Americans Stop Buying in Israel as Dollar Falls

A sharp decline in the value of the US dollar has slowed American demand for Israeli real estate, while purchases by French and British buyers have increased, according to a new Finance Ministry report.

American buyers accounted for 49% of foreign property purchases in Israel during the first quarter of 2026, down from 60% during the same period last year. Despite the decline, US buyers continued to purchase significantly more expensive properties than other foreign nationals.

The analysis, published by the Finance Ministry’s Chief Economist’s Office as part of its March 2026 residential real estate review, is the government’s first detailed breakdown of foreign property purchases by the country where buyers’ passports were issued.

Buyers from the United States, France and the United Kingdom accounted for 87% of all residential properties purchased by foreign citizens in the first three months of 2026.

Americans bought 238 apartments during the quarter, down slightly from 248 in the first quarter of 2025. French buyers purchased 130 apartments, up from 84 a year earlier. British buyers purchased 57 apartments, compared with 37 in the same period last year.

Government economists attributed the drop in American activity to the weakening dollar, which fell 13.6% against the shekel over the period, making Israeli property more expensive for buyers relying on US currency. The euro weakened by only 4% against the shekel during the same period.

Canadian buyers purchased 16 apartments in the first quarter, while Australians bought 10.

The report also found differences in location preferences. Among American buyers, 52.5% of purchases were in Jerusalem, with a median price of NIS 5.1 million, or about $1.75 million. Netanya overtook Beit Shemesh as the second-most popular destination for Americans, with 27 apartments sold, compared with 24 in Beit Shemesh. Kiryat Gat ranked fourth with 11 transactions, followed by Tel Aviv with 10.

Among French buyers, Netanya was the top destination, with 35 apartments sold. Jerusalem and Tel Aviv tied for second place with 28 purchases each. Bat Yam recorded 12 transactions, while Ashdod, historically a major center for French real estate investment, saw only five purchases.

French buyers bought more modestly priced homes than Americans, with an average purchase price of NIS 2.8 million, or about $962,000.

The shift in foreign buying comes as Israel’s broader housing market cools. Total residential transactions fell 8% year-over-year in March, a decline the Finance Ministry partly attributed to the effects of the IDF’s Operation Roaring Lion against Iran.