Moving to Israel: Housing Guide for New Immigrants
Moving to Israel: Housing Guide for New Immigrants
If you are moving to Israel, or planning to, housing is the decision that shapes everything else: which community you join, which schools your children attend, how long your commute is and how quickly you feel at home.
Official market data — Israel (CBS, 2026)
National average: ₪2,392,000 in H1 2026 (+3.9% vs. H1 2025); the CBS housing price index for February–March 2026 was down 1.2% year on year
Purchase tax for a foreign resident or investor: 8% up to ₪6,055,070 and 10% above; bank financing for non-residents is capped at 50% of the property value (up to 75% for an Israeli resident buying a single home)
Source: Israel Central Bureau of Statistics — average apartment prices for the first half of 2026 (published 15 September 2026), the housing price index (published 15 May 2026) and the Q1 2026 rent survey. These are city-wide averages; the actual price depends on the neighborhood, size, floor and condition. Before any decision we show you real transactions recorded with the Israel Tax Authority in the area you are considering.
This page covers where new immigrants settle, whether to rent or buy first, how the housing process differs from the country you are leaving and how we help olim land softly.
Israel at a glance
Israel is a small, dense country where most of the population and most of the housing demand sit along the Mediterranean coastal plain, between Haifa in the north and Ashdod in the south, with Jerusalem in the hills to the east.
The market is dominated by apartments in multi-family buildings; private houses are concentrated in older suburbs, moshavim and community settlements. Land is mostly state-owned and leased long-term through the Israel Land Authority, with a smaller share of privately owned (tabu) land.
Foreign residents can buy freely in Israel. Purchase tax is higher for non-residents and for second homes than for Israeli first-time buyers, so tax planning belongs at the start of the process, not the end.
Getting around:Israel Railways links the coastal cities and Jerusalem, Ben Gurion Airport sits between Tel Aviv and Jerusalem, and Highways 2, 4, 6 and 1 carry most of the intercity traffic.
Where new immigrants settle – and why
Where olim settle usually follows language and community. English speakers cluster in Jerusalem (Rehavia, Baka, the German Colony, Arnona, Har Nof), Ra'anana, Modi'in, Beit Shemesh and Efrat; French speakers in Netanya, Ashdod, Jerusalem and Tel Aviv; and younger professionals of every background in Tel Aviv and its suburbs. Each has schools, synagogues and services that make the first year easier.
Rent first or buy first?
Most advisers – and most of our clients – rent for the first year. It lets you test a neighbourhood, learn how Israeli buildings and schools work and finalise your financial picture before committing. Buying immediately makes sense when you already know the community, when you are bringing proceeds from a home sale abroad and want them in shekels, or when a specific property comes up that would not wait.
Purchase tax –new immigrants have historically had a preferential purchase-tax track for a limited period around their aliyah; the rules have changed over time, so confirm the current position with a lawyer
Mortgages –Israeli banks lend to olim, but income earned abroad is assessed conservatively; a mortgage broker who works with immigrants is worth the fee
Currency –prices are in shekels; timing and hedging of a large transfer can matter more than a percent of negotiation
Paperwork –an Israeli ID number, bank account and lawyer are needed before you can sign anything
Community –proximity to a school, a synagogue or an English-speaking network is usually the deciding factor in the first years
Areas to know in Israel
Location within Israel matters more than almost any other factor. These are the areas our clients ask about most:
Tel Aviv and Gush Dan –the economic centre – Tel Aviv, Ramat Gan, Givatayim, Herzliya, Bat Yam, Holon and Rishon LeZion
Jerusalem and its surroundings –the capital plus Beit Shemesh, Mevaseret Zion, Modi'in and the Gush Etzion communities
The Sharon coast –Netanya, Herzliya, Ra'anana, Kfar Saba and Caesarea – popular with French and Anglo buyers
Haifa and the north –Haifa, the Krayot, Nahariya, Akko, Karmiel, Tiberias and the Galilee villages
The south –Ashdod, Ashkelon, Beer Sheva, Eilat and the Negev towns
Housing stock and who buys in Israel
What you will find on the market: new towers with underground parking and a reinforced safe room (mamad) in every apartment, mid-century walk-ups that are being rebuilt under the TAMA 38 and pinui-binui urban-renewal programmes, and a smaller stock of villas, cottages and garden apartments.
Who you will be competing with: Israelis upgrading or investing, new immigrants (olim), diaspora families from the United States, France, the United Kingdom and Latin America buying a second home, and overseas investors looking for rental income in a supply-constrained market.
Every purchase runs through a lawyer who registers a caveat (he'arat azhara) in the Land Registry, and payments are staged against milestones written into the contract.
How Kobi Elkayam Real Estate helps
Kobi Elkayam Real Estate Ltd is part of the Elkayam Group, a Tel Aviv family business whose roots go back to 1945 and is now in its third generation. The group is active as a developer – in urban renewal, combination deals and complex transactions – and as a brokerage for international clients, working in English, French and Hebrew from its offices at 37 Rival Street, Tel Aviv.
Search and shortlisting in Israel –agency, private and off-market sources, screened in person
Video and in-person viewings –timed to your visits to Israel
Negotiation –against verified transaction data, through your lawyer
Professional team –introductions to real-estate lawyers, tax advisers, mortgage brokers and appraisers who work with overseas clients
Developer projects and complex deals –access to the group's own projects and to combination and urban-renewal opportunities
After the purchase –management, letting and renovation partners so the property works while you are abroad
Can a foreigner buy real estate in Israel?
Yes. Non-residents can buy freely in Israel and hold the property in their own name. You will need an Israeli lawyer, a tax file number for the purchase-tax filing and a way to transfer funds in shekels; a notarised power of attorney lets your lawyer sign if you cannot be in Israel.
Should I buy before I make aliyah?
Only if you know the community well or a specific property will not wait. Most olim rent first; buying before arrival also affects the timing of any immigrant purchase-tax benefit, which your lawyer should model.
Can olim get a mortgage in Israel?
Yes. Banks lend to new immigrants, though income earned abroad is assessed conservatively and documentation requirements are heavier. A mortgage broker who works with olim is worth the fee.
Which cities have the strongest English- and French-speaking communities?
English: Jerusalem, Ra'anana, Modi'in, Beit Shemesh, Efrat and Herzliya. French: Netanya, Ashdod, Jerusalem, Tel Aviv and Ra'anana. Each has schools, synagogues and services in your language, which makes the first year much easier.
Related guides
Talk to us about a purchase in Israel.Call +972-53-658-4252, write to support@kobielkayamrealestateltd.com, orleave your detailsand a member of the team will get back to you in English, French or Hebrew.