Meet the North: About Living in The North of Israel

Galilee, also known as Ha-Galil, is the northern region of ancient Israel, conforming to modern northern Israel. It is divided into two parts, the Upper and Lower Galilee located around Zefat, which has higher mountains separated by narrow valleys, and the Lower Galilee, located around Nazareth. Suppose you consider not living in the large cities in or in the country's center. In that case, northern Israel has distinct features and lifestyles you can easily adapt to, including housing options. Living in the northern part of Israel may also be suitable for small families and those retiring. Living in The Galilee Region The Galilee region is divided into two geographical areas: the higher and lower sections. The lower section is extensively known for the abundance of agricultural land and diverse opportunities. In contrast, the upper area is known for its extended rock terrains mountains (Mount Tabor and Mount Meron). Galilee is known for its tourist attraction worldwide because of the lakes, streams, and forests. Some places to explore in Northern Israel are Lake Kinneret, Safed, Tiberias, and many more. Beyond the tourist adventures, which is also a means of job opportunity for those living there, employment possibilities are springing up. There are opportunities for individuals who have resources and can work to make aliya, opportunities to own and manage Bed and Breakfast operations, and lots more. In partnership with Nefesh B’ Nefesh, the government also provides resources for families interested in making aliya and is willing to settle in some of the smaller communities of Galilee.

Return on Investment of Real Estate in Israel

Inspired by https://bhii.co.il Maybe you are wondering whether a decision to buy a house or investment in real estate in Israel is a risky investment that is worth undertaking. First, you have mitigated your risk by selecting a trusted real estate partner, BHII company. But that is not everything in property buying, just like any other investment you need to know the average return on investment for the property market in Israel. When we study investments, we look at historical returns, analyze the trend and build models that factor macro and economic environment in order to predict future performance. Real estate investment analysis follows the same norm used in investment analysis, you have to look at historical prices, study population trends, and factor economic elements when predicting how prices are likely to behave in the future. If you are an Israel living in the U.S.A or in any other foreign country or you are a real estate investor looking to tap into Israel property market, you will be surprised to know the research shows housing prices in Israel have almost doubled in 10 years. Smart investment decision requires studying returns on investment and determining whether returns on investment generated matches the risk taken. For Israelis’ living in the U.S.A or working in any other part of the world there’s a good financial reason for owning a real estate investment in Israel besides being emotionally attached to the country. For example, if you had bought a three-bedroom family house in 2011 that average a cost of NIS 1,450,000 nationwide (NIS 1,450,000 was equal to $402, 777 when converted at an average exchange rate of Shekel - dollar rate of 3.6 in 2011) you would be able to sell the same house at an average price of NIS 2,200,000 in 2021 (NIS 2,200,000 translates to $709,667 using an average of Shekel – dollar rate of 3.1 as of December 2021). Assuming the house is being sold today, the investment would generate a 76% return on investment (ROI) on dollar amount over the period the property was being held. In case the property was being rented out, the return on investment would be higher than 76% as a result of rental income earned over the period of 10 years. Although the analysis given above gives you an overview of the market performance, housing prices and returns on investment may differ according to the city and neighborhood. Prudent property investment decision requires setting financial goals and laying the reason for acquiring the property. Someone looking for a vacation home or planning to settle in Israel may have different financial goals and investment strategies from an investor speculating in real estate price movement. But a unifying factor driving property prices in Israel is the government policy toward the state-owned land policy. Because of the restricted supply of land and the government's inability to build enough units to cater to the increasing population the prices of property in Israel continues to rise year after year. And since there’s demand for housing and the government is not keeping up with demand for building enough units to cater to the growing population, the property prices in Israel will continue rising at an average rate of 10% per year.