Diaspora Jews flood
Jerusalem's housing market.

SHOSHANA KORD OVA
Jewish Renaissance Media

ost diaspora Jews may not be ready to make
aliyah, but an increasing number from the
United States, France and England have fig-
ured out a way to live at least part of the year in Israel
— by owning a second home there.
In a trend that has become particularly noticeable in
the last six months but first began gaining steam
around mid-2003, non-Israelis have been fueling an
upswing in the sector of the Israeli real estate market
that supplies what foreigners want: new or recently ren-
ovated apartments in desirable neighborhoods, mostly
in Jerusalem.
Many of the buyers are religious, and quite a few are
intent on snagging a luxury apartment.
Foreign property purchases jumped in 2003, pulling
up an investment level that hadn't seen much positive
motion approximately since the 1995 assassination of
then-prime minister Yitzhak Rabin, which essentially
marked the end of the Oslo period.
For example, foreign property purchases — most of
them residential — hit $464 million in 2003 and $600
in the first nine months of 2004.
Stuart Hershkowitz, deputy general manager of the
Bank of Jerusalem, one of Israel's largest mortgage
banks, said the amount of mortgages he deals with
doubled between the first and second halves of 2003,
adding that even the Oslo period can't compare to the
current real estate boom.
"There hasn't been an era like this," said
Hershkowitz, who also heads the bank's international
division. "I think it's the beginning of a trend. I think
it'll just continue to grow.
"A lot of Jews around the world are looking for a
clear affinity with Israel," he said. 'And this is a way of
making aliyah without making aliyah."

Seeking That Connection

A surveyor checks the site of high-priced condominiums going up in Jerusalem.

3/17
2005

26

Real estate agents and buyers cite financial, security,
spiritual and family considerations as reasons that Jews
abroad purchase second homes in Israel.
Buyers emphasize a desire to connect with Israel,
with some seeing the Holy Land as a kind of meeting
ground for children and grandchildren scattered across
the U.S. and Israel. Many of the Americans buying
property here, particularly luxury homes, are from the
New York area and generally visit Israel during Jewish
holidays and the summer, brokers said.
On the financial side, housing prices in Israel are still
relatively low, and Americans may be spurred to invest

