The Reasons That Israeli Real Estate Prices Expected to Rise in The Coming Years

There are many reasons why it is expected that real estate prices in Israel are expected to rise in the coming years.

The primary and foremost factor is demographics. Presently, Israel boasts a population of 10 million, with one of the highest population growth rates globally, exceeding 2% annually. While numerous European countries are experiencing stagnation or decline in population, Israel is experiencing an exceptionally rapid expansion.

Helms’ projections need yearly updates due to their inability to anticipate the swift population surge. Projections suggest that within 20-25 years, Israel’s population will double—an equivalent of envisioning Tel Aviv, Haifa, Rishon Lezion, Beer Sheva, or any other city multiplied by two.

It is anticipated that by 2040, Israel will become the most densely populated among developed nations and this is perhaps the main element that may indicate the development of real estate prices in Israel and the fact that prices are not going to decrease or stop soon.

The State of Israel is a country that is in economic growth even without the development of high-tech, developing companies make money, there is money in the market, and people earn more. As people earn more and have economic well-being, this translates first of all to demand in the real estate market. Therefore, the demographic axis alongside economic growth in the State of Israel translates to demand in the real estate market, which amounts to expectations of significant price increases.

Adding to the above, due to the unprecedented rise in antisemitic incidents post-Oct. 7, Israel is expected to receive 1 million new Jewish immigrants in the coming years according to the chair of the Jewish Agency, which facilitates immigration.

The organizations that support the new Olim say they anticipate a flood of arrivals soon, once the war ends but concerns about spiking antisemitism are still fresh.

It is painful, but it reinforces our conviction that Israel is the safest place to be Jewish right now, and it is perhaps the only place where we can express our identity proudly and in peace,” he said.

**The content of this article is designed to provide the reader with general information and not to serve as legal or other professional advice for a particular transaction.