Planting roots: At Jerusalem fair, foreign buyers show strong interest in Israeli homes

If Israel’s real estate market has experienced a bit of a chill in recent years, no one told the attendees of a housing expo in Jerusalem on Wednesday.

Interest in new homes around the country was high at the fair at Jerusalem’s Binyanei HaUma (International Convention Center), which targeted potential foreign buyers visiting Israel for the Sukkot holiday. Nearly a thousand people attended the free event, exceeding expectations, according to Eran Rolls, chairman of the Israel Building Center, which organized the event.

“With so much interest from buyers from abroad, the goal of this event is not just to help people find an apartment, but to build a home in Israel,” Rolls said. “This expresses our Zionism and values, and it’s good business for everyone.”

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Among Israeli buyers, demand for housing has slowed lately, partly due to uncertainty in the market since Hamas invaded southern Israel on October 7, 2023. Prices have fallen an average of 1.2 percent over the past 12 months, according to data from the Central Bureau of Statistics, after nearly doubling in the decade before. High interest rates, a record supply of unsold new housing, and high prices have also harmed sales growth.

The trend, however, has been the opposite among Jewish buyers from overseas, many of whom now seek a foothold in Israel where they can relocate with their families in the face of rising antisemitism. The unfavorable currency exchange rate — the shekel currently trades at NIS 3.07 to the dollar, and dipped as low as NIS 2.80 in May — is an obstacle for some, but demand from buyers in the US, France, UK, and other countries is as high as ever, industry representatives said.

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“Now is the time to buy, because once the big wave of immigrants starts coming in, prices will increase dramatically,” said Rolls, describing fearful sentiments he heard during a recent real estate exhibition he organized in the US. “Buying a home in Israel is like planting roots in the ground for your family here.”

Dozens of real estate developers presented their top projects at the expo, alongside stands where banks, health funds, and immigrant organizations offered advice to potential new immigrants, or olim. One company was offering custom Italian designers for high-end apartments, while another promoted a purchase group offering apartments at below-market prices.

Attendees included all sorts of potential buyers, including many curious residents who just wanted to check out the action.

“What better thing is there to do on Sukkot, when we are called to step outside our homes into the Sukkah and think about what’s important in our lives,” said Rabbi Avi Berman, executive director of the Orthodox Union in Israel, which helped promote the event. “Every Jew knows that this is our future, and everybody wants to buy a piece of that future, whether for a future move or as an investment.”

Steve Savitsky, visiting from Woodmere, New York, came to explore the real estate market with his daughter and son-in-law, joining family who already live in Israel.

“I’d always been interested in buying here, and basically made a mistake not doing so earlier,” said Savitsky, a former president of the Orthodox Union. “This event gave me a lot to think about, even if it also made me more confused than I was before.”

While the shekel-dollar exchange rate “isn’t what we want it to be,” Savitsky was optimistic that a glut of apartments available on the market — Finance Ministry data shows a record 83,000 unsold new homes currently available — presented a potential opportunity. He also noted that concerns about Jewish life under New York Mayor Zohran Mamdani, an ardent critic of Israel, made the prospect of buying feel “more serious,” even as he resisted calling it urgent.

“We live in a fantastic community, and I don’t think it’s going to change tomorrow,” he said. Still, he added, “We see the writing on the wall, and we also know history.”

Many attendees were Israeli residents looking to move to new homes.

Steve and Eileen Schongold moved to Israel last year after their daughter immigrated with her family. After renting for a year in Netanya, they came to explore the idea of buying a place ahead of their planned aliyah next summer.

“We’re in an area where a lot of people speak English, and it feels kind of like a home away from home,” Steve said, noting that their daughter lives “close, but not too close.” Getting a mortgage at their old age may be difficult, he mentioned, but the couple is exploring their options.

Jeffrey and Fay Schreiber were at the fair to see what’s on offer while the urban development plan for their Jerusalem apartment building was recently delayed “for a few more years,” Jeffrey said. The couple bought their current home 18 years ago after they immigrated from Detroit, but Jeffrey is daunted by the daily clash between his 56-step walkup and his 73-year-old knees, he said.

Eventually, the building will be renovated and include an elevator, but the couple is unsure what to do until then, Fay said.

“Maybe we’ll rent out our apartment and rent another one in the meantime,” she said. “Or maybe we’ll sell our current place. We’re in flux.”

Sandi Ryker and Emily Hershtal were at the expo for different reasons. The co-founder and business development manager for My Israel Properties were looking to learn about new properties to offer clients abroad.

“We have a trip to England planned for right after the holidays, and another one to America and Canada right afterwards,” Ryker said. “Instead of large events, as some agencies do, we focus on one-on-one meetings with clients who are potentially thinking about aliyah long term, but want to put down roots now.”

Making big decisions is scary for a lot of Jews these days, Ryker said.

“People are afraid of the situation in America or in England, but they are also afraid of the idea of living in Israel. It’s so scary and foreign,” said Ryker. “One of the main things we want to do is kind of offer a hug and say, ‘You’re going to be okay. Life in Israel is great, and everything is going to be fine.'”