Israelis Add Billions to Savings But Still Favor Real Estate Investments

Israeli citizens are seeking greater financial stability, evidenced by a significant increase in cash and deposits. In the second quarter of 2026, over NIS 102 billion was added to public holdings in cash and deposits, according to Bank of Israel data. Concurrently, investors continued to allocate funds to money market funds and bonds, while withdrawing from stock funds. Despite this shift towards safer assets, Israelis are not abandoning real estate. New mortgages totaling approximately NIS 29 billion were taken out in the second quarter of 2026, with the monthly pace reaching between NIS 8.6 and 10 billion from July to September.

This dual trend raises questions about accessing real estate exposure without direct property purchase or stock market involvement. Tria, part of the Luzun Credit and Finance Group, aims to fill this gap. The company directs investor funds into Israeli real estate activities, including bridging loans, transaction financing, and real estate-backed credit.

Eyal Elhiani, CEO of Tria, stated that the data indicates a public search for balance, desiring less volatility while maintaining faith in real estate. He highlighted a need for an intermediate option that allows money to work in Israeli real estate without direct property ownership or dependence on stock market fluctuations. Elhiani noted that recent years have shown no single asset class remaining attractive in all market conditions, with deposits gaining traction as interest rates rose, stocks soaring, and now, with falling rates and volatile markets, real estate-based investments are becoming relevant again.

Tria offers two main investment tracks. The 'Ulti 18' track is for 18 months, offering an expected interest rate of approximately 1% above the Bank of Israel's rate, with funds invested in real estate credit secured by property. Investors can choose to receive interest payments or reinvest them. The 'Real Estate' track is for longer-term commitments, investing in residential and investment real estate loans in Israel, with an expected rate of Prime plus 3% annually. This track is suited for those seeking higher potential returns and longer investment horizons.

For many, these options address the high entry barriers to direct real estate investment, such as substantial down payments, purchase taxes, mortgage costs, and transaction fees. Investing through real estate financing allows participation in the sector without the burdens of full property ownership. While public REITs and alternative investments in projects and funds exist, they often involve stock market volatility, high entry sums, or are geared towards sophisticated investors, sometimes abroad. Tria's model offers a distinct alternative by enabling investment in Israeli residential real estate activities with lower sums, diversifying across various loans and deals, thus avoiding dependence on a single property or project and eliminating the need to trade on the stock exchange. The Israeli investor's choice is now expanding beyond traditional deposits, stocks, or direct property ownership to include intermediate investments linked to real estate without requiring property possession.