Robust shekel hits residence purchases by overseas residents
684 properties had been purchased in Jerusalem by overseas residents in 2025, in response to a survey revealed final week by the Ministry of Finance senior deputy to the chief economist Galit Ben Naim. In Tel Aviv overseas residents bought 186 properties final yr, in Netanya 169 properties and in Beit Shemesh 137 properties. That is no massive shock. Jerusalem is taken into account a significant heart of demand for overseas residents, with buying an residence within the metropolis being seen not solely as an actual property funding but in addition as an identification anchor.
Nonetheless, in latest months the image has begun to vary. The appreciation of the shekel towards the US greenback by about 20% because the starting of 2025 is dampening demand within the capital, and actual property brokers within the metropolis are reporting a slowdown in transactions, particularly in neighborhoods which might be geared toward overseas residents. All that is occurring whereas Jerusalem at present tops the record of latest unsold residences, and on the similar time, residence costs have begun to fall.
18% decline in purchases by People in March-April 2026
The cooling in demand from US non-residents started changing into obvious at first of 2026, however in latest months evidently the destructive pattern is gaining floor. Ministry of Finance knowledge present that in March 2026 there was a rise within the variety of residences bought by People in contrast with final yr (84 in comparison with 65), however on the similar time there was a lower within the relative share of People in complete purchases by overseas residents, from 53% to 49%. The Ministry of Finance notes that one of many essential explanations for that is the weakening of the greenback towards the shekel, which affected the viability of transactions for People.
The lower in demand for residences by overseas residents was notably noticeable in Jerusalem. Greater than half of American purchases in Israel within the first quarter had been concentrated within the capital, however this can be a 5% lower in purchases in contrast with the identical interval final yr. The pattern worsened within the second quarter, when, in response to Ministry of Finance knowledge, in March-April there was a pointy lower of 18% in American purchases in Jerusalem.
Past the dry numbers, actual property brokers and appraisers who function in Jerusalem additionally point out problem in gross sales to overseas residents within the capital. Legal professional and actual property appraiser Kobi Bir, whose actions give attention to Jerusalem, says that the strengthening of the shekel towards the greenback really translated into a rise of about 20% in residence costs for US consumers. “There’s a clear sense of stagnation within the overseas resident market in Jerusalem. It is not that there was a growth right here earlier than, the warfare additionally had its impact, however there isn’t a doubt that the weakening of the greenback has sharply curbed demand.”
RELATED ARTICLES
Alyssa Friedland, a luxurious residence dealer at Remax Hazon in Jerusalem, agrees with Bir: “Six months in the past I had 4 folks taken with a luxurious residence within the Talbiya neighborhood, priced at NIS 14 million. Right now it is perhaps one particular person each two weeks.” In response to her, the change would not solely have an effect on the luxurious phase: The Baka neighborhood, which is taken into account fashionable amongst overseas residents, can also be seeing a decline in transactions. “Right now, a lot of the transactions come from Israeli consumers, whereas overseas residents are merely sitting on the fence,” she provides.
Stagnation in shekels, costs rising in {dollars}
The decline in demand from overseas residents in Jerusalem comes at a very delicate time for the Jerusalem market, which is already beneath stress from excessive provide. The town at present tops the availability desk for brand new unsold residences, with over 10,000 residences awaiting consumers.
On the similar time, residence costs within the capital are additionally on a downward pattern. In response to knowledge from the Central Bureau of Statistics, the worth of a median residence within the Jerusalem district reached a peak of about NIS 3.11 million on the finish of 2025, however within the first quarter of 2026 it fell by about 5.5% to NIS 2.94 million. In annual phrases, this can be a cumulative fall of about 20%. On this context, the Ministry of Finance survey reveals that purchases by overseas residents in Jerusalem are primarily centered on excessive value ranges, with the median value within the first quarter being NIS 5.1 million.
In response to a survey carried out by Matan Shitrit, Phoenix’s chief economist, from the attitude of the US purchaser, the hole between the worth of a median residence in shekels and its value in greenback phrases already stands at tens of p.c: “For the reason that finish of the primary half of 2024, the worth of a median residence in Israel, in response to the Central Bureau of Statistics, has remained nearly unchanged in nominal phrases. In actual phrases, by the best way, there has already been a decline, and that is even earlier than bearing in mind the promotions and advantages that help fairly a number of transactions out there,” explains Shitrit..
In distinction, he says, when these costs are transformed into {dollars}, a totally totally different image emerges – residence costs in Israel in greenback phrases have elevated by about 27%, because of the speedy strengthening of the shekel along with the weakening of the greenback. “To place it into perspective, whereas the Israeli purchaser sees kind of the identical common value in entrance of them over the previous two years (about NIS 2.33 million), for a overseas resident the worth of a median residence in Israel has elevated from about $630,000 to about $790,000 in the identical interval. In different phrases, the Israeli residential market could appear stagnant in shekel phrases, however for overseas residents it has risen sharply in value.”
Revealed by Globes, Israel enterprise information – en.globes.co.il – on July 6, 2026.
© Copyright of Globes Writer Itonut (1983) Ltd., 2026.
