684 properties have been purchased in Jerusalem by international residents in 2025, in accordance with a survey printed final week by the Ministry of Finance senior deputy to the chief economist Galit Ben Naim. In Tel Aviv international residents bought 186 properties final yr, in Netanya 169 properties and in Beit Shemesh 137 properties. That is no large shock. Jerusalem is taken into account a serious middle of demand for international residents, with buying an condo within the metropolis being seen not solely as an actual property funding but additionally as an id anchor.
Nonetheless, in current months the image has begun to vary. The appreciation of the shekel towards the US greenback by about 20% for the reason that 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 aimed toward international residents. All that is occurring whereas Jerusalem presently tops the record of latest unsold flats, and on the identical time, condo costs have begun to fall.
18% decline in purchases by People in March-April 2026
The cooling in demand from US non-residents started turning into obvious initially of 2026, however in current months evidently the adverse development is gaining floor. Ministry of Finance information present that in March 2026 there was a rise within the variety of flats bought by People in contrast with final yr (84 in comparison with 65), however on the identical time there was a lower within the relative share of People in complete purchases by international residents, from 53% to 49%. The Ministry of Finance notes that one of many primary 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 flats by international residents was significantly noticeable in Jerusalem. Greater than half of American purchases in Israel within the first quarter have been concentrated within the capital, however this can be a 5% lower in purchases in contrast with the identical interval final yr. The development worsened within the second quarter, when, in accordance with Ministry of Finance information, 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 issue in gross sales to international 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 truly translated into a rise of about 20% in condo costs for US consumers. “There’s a clear sense of stagnation within the international resident market in Jerusalem. It is not that there was a growth right here earlier than, the struggle additionally had its impact, however there is no such thing as a doubt that the weakening of the greenback has sharply curbed demand.”
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Alyssa Friedland, a luxurious condo dealer at Remax Hazon in Jerusalem, agrees with Bir: “Six months in the past I had 4 folks thinking about a luxurious condo within the Talbiya neighborhood, priced at NIS 14 million. In the present day it is possibly one particular person each two weeks.” Based on her, the change would not solely have an effect on the posh phase: The Baka neighborhood, which is taken into account widespread amongst international residents, can be seeing a decline in transactions. “In the present day, many of the transactions come from Israeli consumers, whereas international residents are merely sitting on the fence,” she provides.
Stagnation in shekels, costs rising in {dollars}
The decline in demand from international residents in Jerusalem comes at a very delicate time for the Jerusalem market, which is already below strain from excessive provide. Town presently tops the availability desk for brand spanking new unsold flats, with over 10,000 flats awaiting consumers.
On the identical time, condo costs within the capital are additionally on a downward development. Based on information from the Central Bureau of Statistics, the value of a mean condo 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 exhibits that purchases by international residents in Jerusalem are primarily centered on excessive worth ranges, with the median worth within the first quarter being NIS 5.1 million.
Based on a survey carried out by Matan Shitrit, Phoenix’s chief economist, from the angle of the US purchaser, the hole between the value of a mean condo in shekels and its worth in greenback phrases already stands at tens of %: “Because the finish of the primary half of 2024, the value of a mean condo in Israel, in accordance with the Central Bureau of Statistics, has remained nearly unchanged in nominal phrases. In actual phrases, by the way in which, there has already been a decline, and that is even earlier than taking into consideration the promotions and advantages that help fairly a number of transactions available in the market,” explains Shitrit..
In distinction, he says, when these costs are transformed into {dollars}, a totally completely different image emerges – condo costs in Israel in greenback phrases have elevated by about 27%, on account 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 worth in entrance of them over the previous two years (about NIS 2.33 million), for a international resident the value of a mean condo 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 international residents it has risen sharply in worth.”
Printed by Globes, Israel enterprise information – en.globes.co.il – on July 6, 2026.
© Copyright of Globes Writer Itonut (1983) Ltd., 2026.
