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Growing population in a small country and the emotional draw of ownership mean the market is booking

Israel’s real estate market defies conventional logic. Interest rates remain high, yields modest and bureaucracy daunting. Add to this the uncertainty of war and most markets would falter. Yet Israel’s property sector continues to climb.

The reason is twofold: first, relentless demand in a country with limited land and a growing population; second, the deep emotional pull of ownership in Israel, which makes the market less vulnerable to financial mood swings than elsewhere.

For investors, this creates a rare blend: stability driven not only by economics but by history and identity. In Israel, property retains value because it represents more than square meters – it represents belonging. To own land in Israel is to hold a piece of history – tangible proof of continuity, connection and faith in the future.

That is why, even in the shadow of war and bureaucracy, demand only rises. From Mediterranean beaches to Jerusalem’s ancient alleyways, from lush hills to desert vistas, Israel offers unmatched diversity of settings and lifestyles. Some buyers dream of seaside penthouses, others of leafy suburban homes, others still of chic city apartments. For all, planting roots there outweighs practical challenges. Even
in times of conflict, the country’s appeal grows, supported by the resilience of the shekel, the strength of the Tel Aviv Stock Exchange and the confidence of global investors.

Rising high above Jerusalem’s enchanting Ein Kerem district is Ein Kerem Gateway by Israel Canada Reem (ICR). Just minutes from the light rail and major routes, residents are perfectly placed between picturesque Ein Kerem and lively Kiryat HaYovel, with sprawling parks, cultural hubs, and leading educational institutions all within reach.

The project’s public areas, designed by renowned architect Dana Oberson, who was inspired by the surrounding landscape are striking with uninterrupted views of Jerusalem’s rolling hills. Shared lounges, outdoor spaces, and landscaped gardens invite community gatherings and quiet reflection alike. Every detail has been considered to foster comfort, connection, and a truly exceptional lifestyle. For those seeking a peaceful home with contemporary style – just 10 minutes from the city centre – Pastoral Ein Kerem Gateway is an address that simply has it all.

Foreign entrepreneurs have also shaped the landscape, launching luxury projects that transform Israel’s cities. Tel Aviv’s seafront now boasts the Kempinski Hotel and David Promenade Residences, exclusively marketed by Holland Real Estate and Neot Shiran. Despite near sell-out, select resale properties do remain. According to Holland Real Estate’s general manager Dudy Jacobs, foreign demand is surging, with buyers seeking both residences and pied-à-terre investments. Jacobs recently closed two high-profile transactions: a 232sqm seafront apartment with a 44sqm terrace for approximately £9.5 million in a project still five to six years from completion, and a 170sqm Rothschild Boulevard apartment with a 25sqm terrace for around £6.5m.

“These exceptional prices reflect limited supply of prime properties and superior development quality,” says Jacobs. For British investors, Tel Aviv represents a unique chance to secure Mediterranean real estate in the region’s most dynamic city.

For full article: https://www.jewishnews.co.uk/the-spirit-driving-israels-property-market/