Closed skies did not keep investors from closing deals...real estate deals, that is. While traveling to Israel was nearly impossible, an increased number of individuals bought property, with an unprecedented boom in the luxury housing market.
Foreign residents and Israeli investments brought about an all-time quarterly record of 22.3 billion shekels in mortgages in the first quarter of 2021. This trend is partially due to Finance Minister Israel Katz's policy lowering the high purchase tax on investment properties had an impact. But many experts think there are other factors at play.
Investors are aware of how Israel’s housing shortage leads to prices rising more quickly, making a property purchase a lucrative investment. In addition, the pandemic caused many people to reevaluate their choices. For Jews living abroad, the inability to come to Israel coupled with decreased political stability led to an increased desire to purchase a piece of the Holy Land. After multiple lockdowns, many Israeli residents craved a larger apartment and a break from city life. Many decided to move or purchase a second home away from the crowded areas. If you are looking to buy property in Israel, check out IsraTransfer's Essential Guide to Buying Property eBook.