Briefly about the main thing
Israel is located in the Middle East, on the eastern coast of the Mediterranean Sea. In the north, the state borders with Lebanon, in the northeast with Syria, in the east with Jordan and the territory of the West Bank of the Jordan River, in the southwest withEgypt and the Gaza Strip.
Israel is a wonderful country for recreation and immigration. Magnificent beaches of the Mediterranean, Dead and Red Seas, world-class health and treatment opportunities, international schools and universities, one of the main cultural, historical and architectural attractions of the world, high-class service and accommodation - that's what attracts foreign guests and those who decide to stay here longer.
First of all, home buyers in Israel value the stability of the local real estate market, the political system, clear tax regulation, and stable profitability. There are good economic indicators here: low unemployment and high economic growth. As for the dynamics of real estate prices, there has never been a sharp decline in them over the past 30 years.
Climate
Despite the small territory, the climate in Israel is uneven and can be both temperate and tropical, with a large number of sunny days per year. Wet summers and mild winters reign on the coast of the country, in mountainous areas, on the contrary, summers are dry, and in winter it is cold. The beach season in Israel reigns all year round. In summer, tourists come to the Mediterranean Sea, Lake Kinneret, in winter it is primarily the Dead and Red Seas. Russians prefer not to visit them in the hottest summer months, when the air temperature is about +38 °C and the water is +30°C.
A little geography
The Biblical Holy Land is a place of pilgrimage for believers from all over the world, and everyone who has visited Israel at least once notes the extraordinary power and strength of this ancient place. The most sacred city of the country is Jerusalem. The Temple Mount complex is located in the Old City, which houses the famous Wailing Wall, the Al-Aqsa Mosque and the Church of the Holy Sepulchre. This centuries-old capital is interesting not only for Christians: she is multicultural. There are many historical monuments in Jerusalem, a visit to which will be interesting to a person of any religion and nationality..jpg)
Nazareth is a holy city built on the site where the Virgin Mary received the good news from the Archangel Michael. There are many beautiful cathedrals here, including the Church of the Archangel Gabriel. And also a picturesque National Park.
The city of Haifa is the largest port and business center of Israel. This city is less "religious", more western than all the others. They even work here on Shabbat. The main attraction of Haifa is the biblical Mount Carmel, on the slopes of which the city stands.
How to get there
Daily regular direct flights Moscow-Tel Aviv from Sheremetyevo are operated by El Al and Aeroflot, the time in the air is about four hours. Israir operates charter flights from Moscow to Tel Aviv and Eilat, and Arkia – only to Tel Aviv. The cost of a round-trip flight from Moscow to Tel Aviv will be about 13,500 rubles. Russians have the opportunity to visit Israel without a visa. The length of stay is 90 out of 180 days. Travelers should keep in mind that the screening at international airports in Israel is much more thorough and lengthy than in most countries of the world.
Real estate market situation
The main feature of the Israeli real estate market is its dynamism, as well as the sharp predominance of demand over supply. The annual growth of the local population reaches several tens of thousands of people, and the need for housing is very acute. Plus, the procedure for obtaining a permit for the use of land for construction in Israel is quite slow, which leads to relatively low rates of development. A lot of wealthy people with dual citizenship living outside the country acquire spare real estate in Israel, so a noticeable number of foreign buyers join the locals.In general, housing in Israel is sold very quickly.
As for prices, they have increased by about 200-250% over the past 10 years. Official statistics for 2016 show that the cost of housing in Israel increased by an average of 9%, and in coastal cities such as Netanya, Tel Aviv, Bat Yam, the growth was even higher. So, in Tel Aviv, prices have risen by 17%. The demand from foreign buyers is growing: today they account for about 12% of the total volume of transactions.
Over the past year, the Israeli authorities have introduced new taxes and amendments to legislation aimed at cooling demand from investors. But experts note that the slowdown in price growth (in the first six months of 2017, the growth was only 3-4%) is only a temporary pause in the market. Investors are waiting to see how the new initiatives of the authorities will manifest themselves, and soon sales volumes, as well as the cost of housing, will rise again.Prices
Experts of the Israeli real estate market rightly point out that this issue is quite worthy of a separate article: there is a very high spread of housing prices in the state. The most expensive objects are sold in Tel Aviv, the cheapest in small towns in the north and south of the country. So, at the moment, a penthouse worth $ 150 million is for sale in Tel Aviv, the price of the apartment may well be $ 25 million. Buying apartments with a good finish, two or three bedrooms in a prestigious area of Tel Aviv, with an area of about 120 sq. m, on average, you should count on a budget of $ 1.2 million. On the periphery, it is quite possible to buy an apartment for $ 200,000. In Bat Yam and Netanya, apartment prices start from $400,000.
The most interesting regions of the country for investment
So, experts divide Israel into several main real estate markets:
1. Tel Aviv
Tel Aviv is a very attractive destination for "prestigious" investments. The most expensive real estate of the state is located here. The cost per square meter is $10,000-20,000. The price of apartments with sea views may well reach $30,000 per square meter. It is not difficult for buyers of real estate in Tel Aviv to rent out their homes. Moreover, this applies to both elite and budget facilities: the demand for rent exceeds the supply by an order of magnitude. In Tel Aviv, the market for renting apartments for short periods is very developed. Tel Aviv, as well as coastal resort towns, is in the greatest demand from foreigners. It is here, as well as in Bat Yam, that experts recommend looking for a place to live and invest.
2. Tel Aviv district of Ramat Gan, Holon, Petah Tikva, Givatayim.
Although these cities are adjacent to Tel Aviv, real estate prices in them are two times lower than in Tel Aviv. Experts note that these cities are comfortable to live in. As a good analogy with them, we can cite developed residential areas of large Russian cities.
3. Coastal cities (except Tel Aviv) – Herzliya-Pituah, Netanya, Ashdod, Ashkelon, Haifa, Bat Yam, Rishon Lezion
These cities are good for investment and for housing due to the presence of beaches, as well as due to the opportunity to purchase apartments with sea views. They have developed a short-term rental market. Prices are very different for apartments on the first coastline and "inside the city".
Separately, it is worth noting Herzliya-Pituakh – an analogue of the Ruble in prestige and prices. Most of the offer of Herzliya-Pituah is villas. At the same time, there is even a street where villas stand on the first coastline, which is rare for the market. It is here that the possessions of most ambassadors and large businessmen, both Israeli and foreign, are located. An artificial island with apartment complexes and a marina has also been built here.
4. Jerusalem District – Jerusalem and the surrounding area
This is the directiongreat for those who want to be close to the main Israeli shrines. The city center, areas located within walking distance from religious sites are in great demand.
Rent
The cities most suitable for renting are Tel Aviv, Bat Yam, Rishon Lezion, Holon and Netanya. The average rental yield in Israel is 2.5-5% per annum for residential properties and reaches 8% for commercial (offices in prestigious areas). In Tel Aviv and surrounding cities, the yield on residential real estate ranges from 2.5-3.5%, and in the periphery it can reach 5%. Renting a two-room apartment in Tel Aviv is ILS 5000 ($1,255) per month. In the neighboring Holon (5 km south of Tel Aviv), you can already rent four-room apartments for this money.
Residence permit
The purchase of real estate does not entitle non-residents to violate the visa-free regime and does not grant the homeowner the right to stay in Israel for more than the statutory period. On the other hand, there are no restrictions in the country for foreigners to buy real estate.
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The subtleties of buying
As in the case of buying a home in any foreign country, the main advice of specialists will be to attract a reliable and proven real estate agency with impressive experience in the market and a good reputation. All housing transactions are carried out here accompanied by a lawyer, who, as a rule, represents each of the parties.
Some expert advice to anyone who is thinking about buying a home in Israel
1. First of all, decide on the purpose of buying – will it be an investment, the purchase of housing for your own living… or both.
2. Select a city. If you come to Israel for permanent residence, it is better to live in this place for at least six months or a year before making a purchase decision.
3. Look at at least 10 apartments in the price segment and in the city where you want to buy housing. Decide on a budget!
4. If the decision is made, do not delay with the purchase –the market is very dynamic and the apartment can simply «leave » in a few days.
5. If it is necessary to obtain a mortgage loan, it is necessary to deal with it immediately. Contact mortgage specialists and start the process as soon as the object is found. It can take from one to four months, and, as practice shows, sellers in Israel do not like to wait.
6. Open a bank account in Israel Any foreigner can do this. To "hold" the apartment for yourself, you can transfer, say, 10% of the cost of the object.
7. Do not be afraid to buy projects on the pit or "on paper", as they say in Israel. You are absolutely protected by law from bankruptcies, etc. But still, every transaction must be carefully checked!
8. To make a deal hire only a Russian-speaking lawyer: finding them in Israel is absolutely not a problem. Also, listen to the recommendations of a real estate agent who knows all the subtleties of the market well and will help avoid wrong decisions.
Portal HomesOverseas.ru thanks Kristina Menschikova and Denis Shteiman (Advex Corporation. Real Estate»), as well as Boris Goren (Goren Real Estate).
photocredits: flickr / dmitry kruglyak / advex corporation. real estate»
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