Land
Open the full Economy chapterThe headline numbers
Indicative averages, secondary market, mid-2026.
- ₪62KTel Aviv / m²Central Tel Aviv averages around ₪62,000 per built square metre, the highest in Israel. Prime Rothschild and Neve Tzedek run far higher.
- ₪25KCountry medianThe national average apartment is about ₪2.33M for ~90 m², or roughly ₪25,000 per square metre, with wide regional spread.
- 75%First-home LTVIsraeli banks finance up to 75% of the purchase price for a first home (50% for investors).
- 0–10%Purchase tax (Mas Rechisha)Stepped scale on the buyer side, from 0% at the bottom band to 10% on luxury slices.
How much one square metre costs
American vs. Israeli real estate
How the Israeli buying process differs from the US: fees, financing, taxes, and the lawyer-led closing path.
- Buyer's agent feeTypically 2.5–3% of price, historically paid by the seller via commission split.Roughly 2% + 18% VAT, paid directly by the buyer if an agent is used.
- Seller's agent feeTypically 2.5–3% of price, paid by the seller at closing.Roughly 2% + 18% VAT, paid by the seller; both sides pay their own.
- Real-estate lawyerOptional in most states; title companies handle closing.Effectively mandatory. Both sides retain lawyers, around 0.5–1.5% each plus VAT.
- Buyer transfer / purchase taxVaries by state; many states charge under 1%, some none at all.Mas Rechisha: stepped scale, 0% up to ~₪1.98M for a first home, climbing to 10%.
- Mortgage LTV (first home)Up to 95–97% with FHA / conforming programs; 80% is the no-PMI standard.Capped at 75% by Bank of Israel rules; 70% for a single residence above the first.
- Mortgage LTV (investor)Typically 75–80% for investment property at standard rates.Hard-capped at 50% for non-primary residences. The biggest financing gap to plan for.
- Closing timeline30–45 days is standard once the contract is signed.60–90 days from contract to keys is normal; pre-sale new builds can stretch years.
- Title systemCounty recorder system, backed by private title insurance.Tabu, the Israel Land Registry. State-run, paper-trail-backed, no insurance required.
- VAT on the homeSales tax does not apply to residential real estate.Resale homes are VAT-exempt; new construction from a developer is sold including 18% VAT.
Olim benefits
The headline package new immigrants receive when buying their first Israeli home: purchase-tax discounts, mortgage support, and absorption-basket help.
- 0.5%
Reduced Mas Rechisha
Olim pay 0% on the first ~₪1.98M, only 0.5% up to ~₪6.05M, then the standard single-home rates above that — a steep discount on a sole residence (post-Aug-2024 rule).
- 7 yrs
Seven-year eligibility window
The Mas Rechisha discount can be used once between one year before aliyah and seven years after.
- 75%
Mashkanta benefits
Up to 75% LTV at favourable rates plus state-backed mortgage programs reserved for olim chadashim.
- ~₪3K/mo
Rental subsidy
Misrad HaAliyah pays a sliding-scale monthly rental subsidy of up to around ₪3,000 (varying by family size, region, and priority area) during the first years after aliyah.
- Free
Misrad HaShikun assistance
Free counselling on mortgages, eligibility, and government housing programs through the Housing Ministry.
- ₪25–35K
Sal Klita absorption basket
Up-front cash grants paid as an arrival lump sum plus monthly instalments over the first year; typical family totals run ₪25,000–₪35,000, often pooled toward the down payment.
The closing process
Ten ordered steps from first viewing to Tabu registration. Israeli closings are lawyer-led, contract-binding, and typically take 60–90 days.
Find the property
Search through Yad2, Madlan, or a local broker; viewings are informal and frequent.
Engage a lawyer
Hire an Israeli real-estate attorney. Lawyers run the closing on both sides, fees around 0.5–1.5% + VAT.
Due diligence (Tabu, Vaad, taxes)
Lawyer pulls the Tabu extract, checks the Vaad Bayit balance, betterment-tax history, and any liens.
Zikaron Devarim (optional)
A short memorandum of agreement; legally binding, so most Israeli lawyers skip it and go straight to contract.
Heskem Mecher, the contract
Full purchase contract signed in front of both lawyers; binding, with no US-style three-day rescission.
Down payment
10–20% wired into the seller's lawyer trust account on the day of signing.
Mortgage approval
Bank approval, an appraisal (shamai), life and home insurance. Usually 30–60 days.
File Mas Rechisha
Buyer files the purchase-tax return with Rashut HaMisim within 60 days; pays the assessed amount.
Final payment & hand-over
Balance wires from buyer + bank to seller; keys, fobs, and Vaad documents change hands.
Tabu registration
The lawyer registers the transfer at the Israel Land Registry. Ownership is final at Tabu, not at signing.