Israelis are well acquainted with real estate markets in Tel Aviv, Netanya, Rishon LeZion, Beit Shemesh, and Jerusalem. But Israel’s periphery is no longer lagging. Real estate investors are increasingly seeking opportunities beyond the country’s traditional demand centers, and a new investor survey by Mizrahi Tefahot Bank, conducted by the Geocartography Institute, shows that Israeli investors are developing a growing appetite for peripheral regions and express strong confidence in the local housing market.
According to the survey, 66% of investors prefer investing in Israeli real estate, and an overwhelming majority say they are not deterred by the ongoing war. These findings bode well for the real estate sector, particularly given that investors are expanding their horizons and actively seeking opportunities far from the center – including communities near the Gaza border and along the northern confrontation line.
Fully 90% of real estate investors are convinced that housing prices in Israel will continue to rise over the long term. In addition, 83% say that purchasing an apartment in Israel remains a sound investment and that there is no reason to delay such a purchase, mainly because the upward price trend is not expected to change in the foreseeable future. Some 64% believe that the Israeli real estate market offers particularly good investment opportunities, especially during the current period.
As part of the study, investors were allowed to select multiple regions in which to invest. The results show that 52% expressed interest in the Haifa and Carmel region, 35% in Jerusalem and its surroundings, 30% in the Upper Galilee, 31% in the Lower Galilee, 38% in the Negev, 26% in the Golan Heights, 25% in northern border communities, 26% in communities surrounding Gaza, and 12% in Judea and Samaria. Notably, 66% of investors believe that profit potential in the periphery is greater than in central Israel.
If the state offered grants or discounts to encourage investment in peripheral areas, 65% of investors say they would invest there. Investor confidence in Israel and the Israeli real estate market does not appear to have been shaken by the war. In fact, 35% of investors say the war has opened up new investment opportunities for them. Moreover, 67% are convinced that, despite the security situation and the housing market slowdown, apartment prices will continue to rise in the short term.
These findings align with 2025 data indicating that a growing number of real estate investors, including foreign residents, are examining and purchasing properties outside Israel’s traditional demand zones. Hadera, for example, has joined the list of cities attracting investor interest, alongside Givat Ze’ev and other localities. Soaring prices in central Israel are prompting investors and homebuyers alike to redraw the map of demand and expand the range of areas they consider viable for investment.
Written in collaboration with Mizrahi Tefahot Bank