Weak dollar, resilient euro: who's buying in Israel in 2026

For a Jew from Brooklyn, London, Moscow, Berlin, Buenos Aires or Montreal, buying in Israel rarely starts with an apartment viewing: it starts with a currency conversion. And in the first quarter of 2026, this conversion has rarely been so unfavorable for dollar holders. According to Israeli government economists cited by the Times of Israel, the dollar lost 13.6% against the shekel compared to the same period in 2025, versus just 4% for the euro. The result: the map of foreign buyers is being redrawn, to the detriment of Americans and to the benefit of Europeans.

First quarter 2026: Americans stagnate, French and British buyers advance

The first quarter 2026 figures, reported by the Times of Israel in May, speak for themselves. American buyers acquired 238 homes, compared to 248 a year earlier, and their share of foreign purchases fell to 49%, down from 60% in the first quarter of 2025. Meanwhile, French buyers rose from 84 to 130 homes, and British buyers from 37 to 57. Further down the ranking, Canadians made 16 acquisitions and Australians 10.

These volumes remain modest on the scale of a market that sells around 8,000 homes per month according to the Central Bureau of Statistics (CBS), but they matter: foreign buyers concentrate on specific cities and neighborhoods, where their weight is far greater than their national share.

Why the currency explains the gap

Government economists attribute this shift to exchange rate fluctuations. A buyer holding dollars has seen their purchasing power shrink by 13.6% in shekel terms over one year, while a euro holder lost only 4%. At an equal price in shekels, a property is therefore mechanically more expensive for the former than for the latter.

The shekel itself remains strong. The Times of Israel reported a rate of 3.06 shekels to the dollar in its August edition, 2.99 on September 4, then 3.07 on October 2: the dollar regained about 2.7% in a month, a slight reprieve for dollar buyers, without changing the underlying trend. As an illustration, an apartment listed at 3 million shekels now costs about $977,000.

Where each community buys

The geography of purchases also tells a story of budget and culture. According to the same first-quarter data, Americans bought in Jerusalem (52.5% of their acquisitions), then Netanya (27 homes), Beit Shemesh (24), Kiryat Gat (11) and Tel Aviv (10). Their median price reaches 5.1 million shekels, or about $1.66 million at the October rate (3.07): a distinctly upscale basket.

French buyers, for their part, favored Netanya (35 homes), Jerusalem (28), Tel Aviv (28), Bat Yam (12) and Ashdod (5), with an average (not median) price of 2.8 million shekels, about $912,000. Two profiles, two budgets, two market logics: Jerusalem's upscale segment on one side, the accessible coastline on the other.

October 2026: the trend is confirmed

The Times of Israel's latest 'Housing Snapshot', published on October 2, again points to this dynamic: French and British buyers are on the rise, while Americans remain hesitant. This observation fits within a real estate market that remains uncertain: according to the CBS, prices rose 0.2% in June-July 2026 compared to May-June, but remain 1.2% below their level a year earlier. In July, 7,692 homes were sold, 4% fewer than in July 2025.

For a foreign buyer, this context is paradoxical: prices are 1.2% lower than a year ago in shekel terms, but the strength of the shekel absorbs this advantage for dollar holders. The equation is more favorable for those holding euros or pounds sterling.

What to do if you hold dollars?

Waiting for a hypothetical dollar rebound is a gamble, not a strategy: exchange rate forecasts are often wrong, and the Israeli market hasn't waited to adapt. According to market analyses, the most motivated sellers are showing greater openness to negotiation, which can partly offset the currency disadvantage.

An American or Canadian buyer isn't condemned to wait-and-see, but must think differently. Developers' payment schedules offer a lever: the Jerusalem Post described in June buyers who pay 15 to 20% as a down payment and settle the balance only upon delivery, sometimes years later. This staggering allows currency exposure to be spread out over time, rather than converting the entire budget at once. The same newspaper noted that developers have become more flexible on payment timelines.

Still, every situation is different: income currency, holding horizon, and possible recourse to local financing matter as much as the day's exchange rate. We detail these trade-offs in our ultimate guide to real estate in Israel.

A global community, different currencies

The Jewish diaspora doesn't have a single currency, and that's what makes the Israeli market so distinctive: when the dollar falters, the euro and the pound sterling take over. The 2026 figures show that diaspora demand isn't disappearing, it's rebalancing: Americans remain the top group of foreign buyers, with 49% of the total. To succeed in your project, you need to watch your own exchange rate as closely as the price per square meter.

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