Buying Off-Plan in Israel (Mechir Lemishtaken): Opportunity or Risk in 2025?

Buying a property off-plan is common in Israel, especially through government-subsidized programs like "Mechir Lemishtaken". These projects attract young couples and first-time buyers with competitive prices—but they also carry hidden risks that are often underestimated.

1. What is off-plan buying?

You purchase a property before or during construction, usually at a reduced price. Payments are made in stages as construction progresses.

2. What is Mechir Lemishtaken?

A government initiative aimed at helping Israelis buy their first home at a subsidized rate.
Eligibility:

• Must be an Israeli citizen with no real estate assets.
• Allocation by lottery.
• Income limits may apply.

➡️ Main benefit: up to 25% below market value, VAT included.

3. Main Advantages

• Lower price compared to the market.
• Flexible payment schedule.
• New apartment, possibly with customization options.
• Tax breaks for first-time buyers.

4. Main Disadvantages and Risks

• Frequent construction delays (sometimes years).
• Developer bankruptcy risk, despite legal protections.
• Quality of construction may differ from plans.
• Surrounding infrastructure often not ready at handover.

5. Practical Tips

• Check the developer’s track record and financial standing.
• Request the mandatory bank guarantee.
• Work with a trusted real estate lawyer.
• Study the project’s location and its future development.
• Plan a financial buffer in case of delays or unexpected costs.