According to The Jerusalem Post, Portugal tops Israeli real-estate investments compared to those in other foreign countries. Portugal is trending for investors in the real-estate sector and hundreds of Israeli investors just participated in the first-ever online conference for Israelis who want to buy land in Portugal.
Real-estate investment trends for Israelis show that the top EU markets include Portugal, Greece and Cyprus according to The Times of Israel.
Portugal’s performance is due to its high yield potential of 8-12% with attractive financing options and an increase in value of around 60% since 2018. Projects marketed to Israelis are currently mainly in Porto but major developments are expected in 2023 including sales fairs in other areas of Portugal.
The Times of Israel describes how housing prices in Israel have skyrocketed since the COVID pandemic. Israeli investors are looking for foreign investments in safe harbors where attractive yields can be obtained for less than a small fortune. A strong shekel makes it possible for Israelis to buy abroad in markets where real-estate is cheaper and where there is less market volatility as well as more attractive loan terms.
Options in Tel Aviv and other big cities in Israel are limited whereas options abroad are more affordable. With prices in Israel increasing by 19% in 2022, industry experts say that this increase is not due to a bubble that is likely to burst but rather to a housing shortage. Prices in Israel are therefore expected to rise whereas this is not the case in other countries that are targeting foreign investments.
While Greece and Cyprus have been key markets for Israeli investors, Portugal is now trending and investors are looking into big cities like Porto and Lisbon where the real-estate market is well-developed and legal fees are low, while offering good rental returns.
According to The Times of Israel, Israelis can buy an apartment in Portugal with a down-payment of only NIS 300,000 and then borrow the difference to invest in a property that costs NIS 1.5 million, that is U$ 430,000. The yield is much higher than what could be obtained by investing in a small apartment in most areas in Israel.
In sunny Algarve with its golden beaches, there are properties priced from EUR 150,000 to EUR 200,000 that are brand new, beach-front apartments with two or three bedrooms which could be financed with NIS 300,000 and a small loan.
It is to be noted that the Portuguese Citizenship Law enacted in 2013 allows Jews who are descendants of deportees from Portugal to obtain citizenship. Since 2015, more than 137,000 Jews have applied for Portuguese citizenship under this provision and more than 57,000 of them have obtained it. This Law allows Sephardic Jews to go back to their roots and return to their historical and cultural heritage.
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