Aliyah and Real Estate in Israel:
A Ultimate Guide for American Jews in 2025

The Israeli real estate market has experienced a significant surge in interest from American Jews, driven by rising antisemitism abroad and a desire to strengthen ties with Israel. This trend has become particularly pronounced since the events of October 7, 2023, and continues to shape the market in early 2025.

Current Market Trends

As of February 2025, the Israeli real estate market shows the following trends:

• Housing prices increased by approximately 7.8% over the past year.

• Mortgage activity reached record levels, with total mortgage values doubling the monthly average of the previous year in December 2024.

• Foreign demand, especially from American Jews, has risen dramatically, with a 119% increase in apartment purchases by foreign residents in September 2024 compared to the previous year.

“We’re seeing unprecedented interest from American Jews looking to invest in Israeli real estate,” says Sarah Levine, a financial advisor specializing in Aliyah. “It’s not just about financial returns; it’s about creating a tangible connection to Israel.

Popular Locations for American Olim

American Jews are particularly interested in:

1. Jerusalem

2. Tel Aviv

3. Herzliya

4. Netanya

5. Beit Shemesh

These areas offer a unique blend of Anglophone communities, investment opportunities, and proximity to historical and religious sites.

Spotlight on Beit Shemesh

Beit Shemesh has become increasingly popular among American olim. With its large English-speaking population and more affordable housing options compared to Jerusalem or Tel Aviv, it’s an attractive option for families making Aliyah.

“Beit Shemesh offers the perfect balance of community, affordability, and proximity to major cities,” explains David Cohen, a real estate agent specializing in Aliyah clients. “We’ve seen a 30% increase in inquiries from American buyers in the past six months alone.”

Financial Considerations

The Israeli real estate market presents both challenges and opportunities:

• High property prices remain a significant hurdle, with the average cost of a 4-room apartment in Tel Aviv exceeding ₪4 million in 2025.

• A strong dollar has encouraged investment from American buyers.

• New tax regulations, including a VAT increase from 17% to 18% in January 2025, affect purchase prices and transaction costs.

Understanding Mortgages for Olim

Navigating the Israeli mortgage market can be complex for new immigrants. Here are some key points to consider:

• Israeli banks typically offer mortgages of up to 50-70% of the property value for non-residents.

• Interest rates for foreign buyers are generally higher than for Israeli citizens.

• Some banks offer special mortgage programs for olim, with more favorable terms.

Try our Olim Mortgage Calculator to estimate your potential payments

The Aliyah Process and Real Estate

Many American Jews view property purchase as a first step towards eventual Aliyah. This gradual approach allows families to:

• Adapt to life in Israel over time

• Maintain connections with their country of origin

• Use the property as a vacation home initially

“Buying property before making Aliyah can ease the transition,” says Rachel Berger, an Aliyah consultant. “It gives families a chance to experience life in Israel without fully committing right away.”

Market Outlook for 2025 and Beyond

Experts anticipate continued growth in the real estate market:

• Some predict home prices could rise by 10-15% in 2025 as demand returns in previously frozen markets.

• Others expect more moderate price increases due to various economic factors.

• The government’s “Apartment for Rent” initiative plans to introduce over 100,000 additional rental apartments nationwide, aiming to address housing shortages and improve affordability.

Curious about the next steps?

• Schedule a personalized consultation with our Aliyah real estate experts

• Explore our current property listings in popular areas for American olim