Experts Urge Israeli Investors to Verify Local Demand Before Buying Overseas Real Estate
At the "Beyond the Sea 2026" real estate conference, industry leaders cautioned Israeli investors to carefully assess local demand before choosing a country for property investment abroad. Uri Altshuler emphasized the importance of identifying who will ultimately buy the property, stressing that a genuine local market, not just other Israeli buyers, is crucial to avoid turning an investment into a financial burden due to management fees and expenses.
The panel highlighted that the key question is not only which country to invest in but whether there is a real secondary market for resale or rental demand. Investments relying mainly on foreign investor marketing without local demand risk depending on continuous new investor inflows rather than stable cash flow or property appreciation.
Yariv Pelemo cited Greece as an example of a market with strong local depth, noting that in 2025, about 41,700 real estate transactions occurred there, with roughly 90% by local buyers. Israelis accounted for only 2%-3% of foreign investors, indicating Greece's market is not solely dependent on foreign buyers. However, even in countries with demand, not all projects or neighborhoods are priced well, especially when investors operate remotely and rely on developers and sales agents.
Nadav Ne'eman stressed the critical role of choosing the right developer, who must understand local authorities, development plans, licensing, and partnerships. The panel also warned against guaranteed return promises, with Pelemo calling such claims marketing tricks and Altshuler labeling them usually fraudulent.
Yaakov added that evaluating companies by transaction numbers or prices is insufficient; VAT reports reveal cash flow realities. He reminded investors that Israeli tax residents must pay taxes on global income and should verify tax treaties and credits to avoid double taxation.
Popular investment destinations mentioned included Limassol and Athens, favored by Israelis, underscoring the need for thorough due diligence in overseas real estate ventures.
