The three-month period of war in Israel has had a great effect on the world as a whole, and on the global Jewish world in particular.
As a result, Jews living abroad are purchasing at an increasing rate, especially in Jerusalem and Tel Aviv, for the following main reasons:
- Some Jews living abroad consider Israeli real estate acquisitions to be an investment in a stable market, which also contributes to strengthening the Israeli economy.
- Some are purchasing apartments in Israel due to growing anti-Semitism and a compromised sense of personal security, and consider Israeli real estate acquisitions to be an “insurance policy”.
- Some have always had a desire to someday purchase an apartment in Israel and were just waiting for retirement, for their children to grow up, or for the stars to align. Presently, they have an impulse to now buy in Israel that stems from many reasons, some emotional and some financial.
Despite the desire to acquire an apartment in Israel, this kind of move requires prior financial preparation. Jews living abroad were surprised by the effects of the war, just as the war itself surprised us, and their reality has changed considerably over a short period of time. Based on the changing reality, Jews in the diaspora have had to accelerate their plans to purchase an apartment in Israel. As such, they found that purchasing an apartment “on paper” from new/developing projects is a suitable solution for the current reality.
The perspective of non-residents on the advantages of buying an apartment “on paper” from new projects:
The price of a project under construction:
In most cases, properties sold “on paper” have prices that are more attractive than market prices because of the length of time buyers have to wait to receive their apartments.
Spreading out payment over time:
One of the most important parameters for non-residents these days (precisely because they did not intend to purchase at this time) is the ability to pay a small amount at signing and then spread out the remainder conveniently over the construction period. This affords them the breathing room they require, as well as the financial flexibility for making the purchase.
Influence on the apartment design:
Non-residents who move to Israel need to make changes to their lifestyles and the ability to influence the design of their apartment according to their individual needs can make the moving process easier and more pleasant for them.
Influence on the technical specifications:
When purchasing an apartment from a new project, buyers will receive a technical specification that will usually be negotiated, and they will be able to make upgrades/modifications that are more suitable for their individual needs.
A wider range of apartments:
New projects have a variety of different-sized apartments facing different directions, built with higher standards, and with more options available overall — all of which provide greater flexibility. Moreover, the quantity of available apartments sometimes allows multiple people from the same community to purchase in the same building, which may be helpful during the actual buying process and give them more of a feeling of comfort and familiarity after receiving the apartment.
Warranty and maintenance period
The maintenance and warranty period from the developers, which are mandated by Israeli law, gives buyers a sense of security about the final results since someone is made responsible for handling any defects or problems that may arise.
Bank guarantees:
For most projects, developers are accompanied by a lending bank that provides bank guarantees starting from the first shekel paid, which gives buyers confidence in the process and outcome.
Above all, there is another important parameter that gives non-residents confidence to purchase property in Israel — a stable local real estate market that has presented high returns and improved asset value over the course of many years.
It is worth mentioning that making a purchase on paper is not necessarily suitable for everyone since some people want to see and experience the apartment, its property, the direction it faces, and its view prior to purchasing.
As with any real estate transaction, the professional team accompanying “on paper” purchases is infinitely important. Professional real estate agents and lawyers can make buying an apartment pleasant and satisfying while accompanying the client transparently to finalize a deal that is adapted to their needs and gives them confidence and certainty in the outcome.
We at Prosperity Real Estate, who have been marketing new projects in luxury areas of Jerusalem and Tel Aviv for decades, know the buyers who come to us from all over the world very well, as well as their unique needs. We accompany them to success along the entire journey and advise and assist them in closing the right deal for them up until the delivery of their new apartment.
