Opportunities And Dangers In Israel’s Real Estate Industry

Israel has a booming real estate property market now. Demand for flats in Israel is increasing, rates keep going up, and many new flat projects are on the anvil. Even so, alongside the land buying opportunities, there are dangers for landowners and people who are keen on buying new apartments or land.

Between Herzliya and Tel Aviv, there will be new neighborhood constructions with numerous flats in the making to be included in the market. Besides, the number of flats at the heart of Israel will also go up considerably. The flats are planned in big land complexes, and most of those are in different planning institution proceedings. The project plans were put forward for consideration to various committees at different phases of approvals. Several landowners in the complexes are not locals, and they have no idea about plan changes or opportunities for quick land realization.

Israeli lawyer groups say that private parties own a big portion of that land in the complexes, save the properties that Israel’s government owns and are marketed as ILA tender elements. Private land in Israel is ripe for sizeable transactional activity. A portion of the property transactions will happen between private parties and entrepreneurs and companies.

The parcels of land’s location at the heart of the nation is an odd one, with some complexes near the ocean. Therefore, the rates before the plans’ approval can be 1.5 million new Israel shekels per unit for the requested real estate complexes. That said, the industry expects that in the event of the plans being approved and construction being able to start, the rates would increase.

Now, what about the risks in Israeli property transactions? Israel landowners who live overseas must hire a lawyer for representation for fear of deceptive actions and fraud. Over the last few years, numerous cases of land cost forgery have occurred in Israel where fraudsters exploited those landowners who live abroad.

Fraudulent parties can forge a piece of land’s ownership and then sell the property without the knowledge of the owner who lives abroad. For instance, in a recent Supreme Court ruling on a case where one posed as the registered property owner with forged paperwork, the party vanished after the fraud. The registered property owner, an overseas resident, demanded that the transaction be canceled, but he had no legal right to the land’s restitution as the buyers registered the property with Israel’s Land Registry. Such situations show why foreign owners must work with an Israel property attorney with experience in managing those.