Weakened Dollar Cools American Demand as French, British Buyers Surge

A recent report from Israel's Finance Ministry reveals that foreign demand for Israeli real estate has shifted in recent months. The weakening US dollar, which depreciated by 13.6% against the Israeli shekel, has cooled American interest in purchasing Israeli properties.

The data, published as part of the ministry's March 2026 residential real estate review, found that American buyers accounted for 49% of all foreign property purchases in the first quarter of this year, down from 60% in the same period last year. However, the homes they acquired were significantly more expensive than those bought by other foreign nationals.

French and British buyers, on the other hand, have surged in demand, with French citizens purchasing 130 apartments in the first quarter, up from 84 a year earlier, and British buyers acquiring 57 apartments, compared to 37 in the same period last year. The report notes that these buyers focused on more modest homes, with an average purchase price of NIS 2.8 million ($962,000) for French citizens.

The shift in foreign investment comes amid a broader cooldown in Israel's housing market, with total residential transactions falling by 8% year-over-year in March.