A weak US dollar (and almost all other currencies) against a strong shekel has deterred many foreign buyers from entering the Israeli property market. Quite simply, their purchasing power has diminished. The US dollar is at one of its lowest points in nearly thirty years, meaning every dollar converts into fewer shekels and makes property more expensive in real terms.

The desire to purchase in Israel hasn’t diminished, but many buyers are more hesitant now, choosing to wait and see how the market evolves.

At the same time, other buyers are taking a different approach. Recognizing that property prices in Israel are likely to continue rising, they are shifting their focus toward new developments—locking in a price today while structuring payments over time.

Below are some of the key reasons driving this trend:

1. Spreading Payments Allows You to “Buy Time”

One of the most significant advantages of purchasing in a new development is the ability to spread payments over several years, in line with the construction timeline.

Many projects recently started to offer attractive payment structures such as 10/90 or 20/80—meaning 10% or 20% is paid upon signing, with the balance paid shortly before the end of construction and delivery. This is a structure unique to new developments, made possible through the developer’s financing arrangements.

From a buyer’s perspective, this is a fundamental shift. Rather than converting a large sum of dollars into shekels at today’s rate, only a small portion is required upfront—effectively allowing buyers to “buy time.” Whether in the hope that exchange rates improve, or simply to create space to plan financing, this is a key driver behind the growing interest in new developments.

2. Locking in Today’s Price in a Rising Market

Many buyers (and others in the industry) believe that property prices in Israel will continue to increase over time. The Israeli property market has historically shown resilience—even through wars, global economic instability, and the Covid pandemic.

By signing a contract today, buyers are effectively locking in the purchase price, even if payments are completed over several years. This creates a strategic advantage in a market where long-term growth is widely anticipated.

3. Time Creates Flexibility to Sell Existing Assets

The extended payment structure also provides buyers with greater financial flexibility.

For those planning to make aliyah, purchases are often funded through the sale of a property abroad. Buying “on paper” allows buyers the time to market, sell, and close on that property without being forced into rushed decisions or unfavorable pricing.

4. Shekel-Based Financing Reduces Currency Exposure

Financing strategies are also playing a key role in shaping buyer behavior.

Mortgage brokers are increasingly advising buyers to take mortgage funds earlier in the process, reducing the need to convert large sums of dollars upfront. In addition, many buyers are opting for shekel-based loans, aligning their liability with the local currency.

This approach can significantly reduce—or even eliminate—exposure to exchange rate fluctuations, allowing buyers to move forward without needing to hedge the dollar.

Please note: obtaining a mortgage before paying the full amount from your own funds requires pre-approval from the bank. 

5. Negotiation Opportunities and the Role of Legal Structuring 

In a slower or more cautious market, developers may be more open to negotiation—whether on price, payment schedules, capping the exposure to the building index, and other additional benefits. This can place buyers in a stronger position and create opportunities to secure more favorable terms.

This is where having an experienced real estate lawyer becomes critical. A lawyer can negotiate more favorable terms on your behalf or provide important suggestions on items to request, including spreading payments over time in a way that aligns with your financial planning.

This added flexibility can provide buyers with additional options to lower the exposure to exchange rates. At the same time, even if the dollar does not strengthen, it allows buyers the time to plan accordingly, manage cash flow, and make strategic decisions—rather than being tied to a single point in time.

A Strategic Approach in a Complex Market

While a weak dollar presents challenges, it has also shifted the way buyers approach the market or what builders are willing to offer and negotiate on.

New developments offer a structure that provides flexibility, planning ability, and strategic entry into Israeli real estate—rather than requiring a single, immediate financial commitment.

For many buyers, this is not about timing the currency perfectly. It is about creating a framework that allows them to move forward with confidence, while managing risk along the way.