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Moving to Israel: Housing Guide for New Immigrants and Relocating Families

Moving to Israel

Housing is the biggest decision of any Aliyah, and the sequence matters: pilot trip, community, rental, then purchase. New immigrants receive reduced purchase-tax brackets usable from one year before to seven years after arrival, favorable mortgage terms and an absorption basket, and most families rent for the first year. This guide walks through the timeline, the cities Olim actually choose and the paperwork you need before you can buy.

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.

Israel: the market in context

Israel packs about ten million people into a coastal strip, a hill country and a desert, and the shortage of buildable land near jobs is the single fact that explains the market: prices roughly doubled over the past decade and demand from young families, tech workers, immigrants and overseas buyers keeps pressure on supply. Most of the land is owned by the state and leased long-term through the Israel Land Authority, which is why most apartments are bought as long leases that behave exactly like freehold in practice.

Ben Gurion Airport sits 20 minutes from Tel Aviv, Israel Railways links the coast to Jerusalem in 30 minutes and the Tel Aviv light rail is expanding across Gush Dan. English is spoken everywhere in business, and every major city has an established English-speaking community.

Demand drivers to understand before you commit:

Chronic housing shortage
Steady population growth
A technology economy that keeps attracting global capital
Immigration waves that lift demand in specific cities
Property rights that protect foreign owners exactly like locals

Who buys in Israel: Jewish families from North America, France and the UK buying a second home or preparing for Aliyah, tech founders relocating, and yield investors looking for hard-currency diversification.

Areas and price bands in Israel

[Tel Aviv and Gush Dan](/realestatepages/tel-aviv-apartments-prices-neighborhoods-and-opportunities)— the economic core; highest prices, deepest rental demand
[Jerusalem](/realestatepages/apartments-in-jerusalem-market-guide-for-overseas-buyers-2026)— the capital; strong overseas and religious-community demand
[The Sharon coast (Herzliya, Ra'anana, Netanya)](/realestatepages/herzliya-real-estate-complete-guide-for-international-investors)— villas, beaches and English-speaking communities
[Haifa and the north](/realestatepages/haifa-real-estate-complete-guide-for-international-investors)— value pricing, universities, the Galilee and Golan for land and lifestyle
[The south (Ashdod, Ashkelon, Beer Sheva, Eilat)](/realestatepages/beer-sheva-real-estate-market-guide-for-overseas-buyers-2026)— entry prices and higher yields

The housing timeline that works

Pilot trip: visit two or three communities, speak to families who moved from your country, and see apartments at real prices.
Rent for the first year: a 12-month lease with an option gives you time to learn neighborhoods, schools and commutes before committing capital.
Open an Israeli bank account and obtain your Teudat Zehut and Teudat Oleh; both are needed for Tabu registration and Oleh mortgage terms.
Buy within the Oleh purchase-tax window (up to seven years after Aliyah) once you know where you want to be.
Plan currency transfers early; banks require source-of-funds documentation and exchange timing can move your budget by several percent.

New immigrants receive reduced purchase-tax brackets usable from one year before to seven years after Aliyah, favorable mortgage terms through the Ministry of Immigration, and an absorption basket; most families rent for the first year while they choose a community. Israeli banks lend to non-residents, but usually at 50% loan-to-value or less, with proof of foreign income, a local account and a life-insurance policy assigned to the bank; Israeli residents can borrow up to 75% on a first home (Source: Bank of Israel, Directive 329).

Where Olim actually settle

Jerusalem:the largest English-speaking community in Israel (Rechavia, Baka, Har Nof, Ramot).
Ra'anana, Modi'in and Beit Shemesh:the three big Anglo family hubs, each with English-speaking schools tracks and synagogues.
Netanya and Ashdod:the French-speaking centers, with Ir Yamim as the flagship neighborhood.
Tel Aviv and Herzliya:for professionals in tech and finance who want the coast and the job market.
Efrat, Hashmonaim and Ramat Givat Ze'ev:religious Anglo communities near Jerusalem and Modi'in.
Haifa, Beer Sheva and the north:lower prices and university towns for those who value space over proximity.

Advantages

Property rights for foreigners identical to locals
Two decades of consistent appreciation
Deep rental demand in every major city
English widely spoken in business and law

Points to consider

Purchase tax of 8%–10% for non-residents (Source: Israel Tax Authority, 2026)
High entry prices in the center
Bureaucracy and Hebrew-language paperwork
Interest rates that make financing expensive

Working with us from abroad

Kobi Elkayam Real Estate Ltd is a Tel Aviv developer and licensed brokerage, part of the Elkayam Group, a family business now in its third generation. We guide international clients through every stage of buying in Israel: search and off-market sourcing, price analysis against registered transactions, negotiation, coordination with English-speaking lawyers and mortgage advisers, and management after the keys. The group's own projects include Kiryati 10 in Tel Aviv, the H/500 compound in Holon, Tel Nofim beside Sde Dov, Alhadif 44 in Tiberias and the Hasan Arafa railway compound. We work in Hebrew, English and French.

Should I buy before or after making Aliyah?

Usually after, once you have chosen a community and have an Israeli ID and bank account. The Oleh purchase-tax benefit covers purchases from one year before Aliyah to seven years after, so there is no rush to buy first.

What purchase tax do Olim pay?

Reduced brackets far below the 8% investor rate, adjusted every January; your lawyer will confirm the current thresholds. The benefit applies to one residential purchase within the window.

Can Olim get a mortgage?

Yes. Israeli banks lend to new immigrants at Israeli-resident terms (up to 75% on a first home) once income is documented, and the Ministry of Immigration offers a subsidized loan for eligible Olim (Source: Bank of Israel, Directive 329).

Which cities have the biggest English-speaking communities?

Jerusalem, Ra'anana, Modi'in and Beit Shemesh lead, followed by Tel Aviv, Herzliya, Netanya, Efrat and the religious communities around Jerusalem and Modi'in.

How much do I need to rent for the first year?

Planning your Aliyah housing?Personal consultation in English or French: +972-53-658-4252 · leave your details on this page and we will get back to you within one business day.