Major Investors Shift From Tel Aviv and Haifa to Ultra-Orthodox Cities in Israel's Real Estate Market

Israel's real estate investment market is undergoing a significant transformation as the proportion of investors owning three or more properties has dropped sharply to about 20% of all buyers, down from approximately 30% in 2024. This decline translates to roughly 1,200 transactions by heavy investors since the start of the year, averaging 240 deals per month compared to 375 monthly transactions (around 4,500 total) during the same period last year, according to Globes.

Traditional investment hotspots like Tel Aviv, which previously accounted for a third of heavy investors in 2024, have seen their share fall to 20%. Haifa's share of such investors has halved to 16%, and Beersheba experienced a one-third decrease to 20%. Meanwhile, ultra-Orthodox areas have emerged as new centers of heavy investment activity. The tax region of Tiberias, including the Upper Galilee and the Galilee Panhandle, along with Jerusalem, now lead with nearly a quarter of buyers classified as heavy investors (23% in Jerusalem and 45% within Tiberias city itself), with significant activity also noted in Safed.

The ultra-Orthodox community is well-known for purchasing multiple properties, and its representatives in the Knesset have long opposed increased taxation on investors, including resisting making the purchase tax hike permanent. This shift reflects changing dynamics in Israel's real estate investment landscape, with heavy investors moving away from metropolitan centers toward cities with a strong ultra-Orthodox presence.