In recent years, it has become a full-fledged trend. Many Israelis recognize the significant profit potential in investing in real estate abroad, and more and more investors are turning to this path. These transactions take place in various countries, with one of the most prominent hotspots for Israeli investors being regions undergoing rapid development — such as Eastern European countries, considered to have excellent appreciation potential. However, there are also deals in the United States and Western Europe.
Why is it worthwhile?
The rush toward real estate investment abroad is influenced by the near-zero interest rates offered by Israeli banks and the uncertainty in the capital market, which deters potential investors from bank deposits and the stock exchange. Real estate has always been considered a relatively secure investment, but aside from rare opportunities, the high real-estate prices in Israel limit expected returns, making domestic property investments far less attractive.
As a result, many Israelis find real estate opportunities abroad that provide a profitable, worthwhile alternative to purchasing property in Israel. Sharp-eyed (or lucky) investors might still find worthwhile investments at home, but looking abroad greatly expands and diversifies the pool of opportunities for finding an attractive investment — especially since the Israeli market is small and limited. Also, diversification is one of the most essential principles for any investor.
Moreover, while investing in property in Israel typically requires large sums of money, investing abroad often requires relatively small amounts — sometimes only tens of thousands of dollars. When choosing the right opportunity, the lower investment cost doesn’t reduce the high return the asset can generate.
Thinking of buying on your own? Things you should know
Just like in Israel, you can invest abroad both in built properties and in land that is in pre-construction planning stages. Of course, it’s essential to ensure that the purchase is made from a reliable, professional source with expertise in the field — and that the deal indeed has solid profit potential.
You can purchase assets abroad independently or through an Israeli company that specializes in this field. However, it’s important to remember that this type of investment involves several challenges that must be considered: language barriers, managing the transaction and maintaining the property from afar. Therefore, it’s important to gather information about the local business culture, the real-estate market conditions, banking procedures, and additional nuances related to regulation, economy, legal aspects, and tax laws.
Buying directly might save you certain fees, but it leaves you to handle all challenges alone — and may ultimately become more expensive and risky, especially if you need to travel to the destination country periodically. In contrast, a professional and experienced company can address all these challenges without compromising the profitability of the investment. Israeli companies in this field typically work with trusted and relevant local professionals who help maximize the value of the deal.
An attractive investment opportunity in Hungary
One of the opportunities available to you is an investment in the “Greenvillage” project in Hungary. This is a luxurious and indulgent resort near Budapest, spread across about 500 dunams, marketed by an experienced and reputable Israeli company, and already approved for construction.
Shefa Europa offers plots for investment or for vacation homes inside a private resort complex located in a quiet, pastoral holiday town. The property overlooks breathtaking natural scenery, surrounded by lush green forests, and is located near an impressive winery and a picturesque lake.
