New build from a developer vs second-hand: what foreign buyers should know
Updated November 2026 · agent+
In Tel Aviv and Ramat Gan you will see both: new towers and projects still on paper, and apartments in buildings from the 1930s to the 2000s. Each route has a different risk profile, cost structure and timeline. This guide sets them side by side from the point of view of a buyer who lives abroad.
Buying from a developer (off-plan or under construction)
Every payment above 7% of the price must be secured by a bank guarantee or insurance under the Sale (Apartments) Law, so your money is protected if the developer fails. Payments follow construction milestones, often 15–20% at signing and the balance over one to three years, with the unpaid balance linked to the construction-cost index.
The price includes VAT and a defined specification (flooring, kitchen, air conditioning, parking, storage). Upgrades are negotiable; the price itself rarely is. Delivery can legally slip by about 60 days; beyond that the developer owes compensation. The developer gives a one-year warranty on finishes and longer periods on structure and systems.
For a buyer abroad the attraction is simple: no renovation, modern standards, a building with a lift and parking, and payments spread over the construction period. The cost is time, index linkage and a price that is usually higher per square metre than second-hand nearby.
Buying second-hand
You see exactly what you get, you can move in or let within weeks, and prices per square metre in older buildings are lower. The checks matter more: the Land Registry extract, building permits for any additions, the house committee’s finances, and whether the building is planned for TAMA 38 reinforcement or pinui-binui demolition and rebuild.
Older Tel Aviv buildings often have no lift, no parking and a leaking roof fund. Factor a renovation budget of ₪3,000–6,000 per square metre for a full refurbishment.
Urban renewal: a special case
An apartment in a building with an approved pinui-binui or TAMA 38 project can be a bargain: you buy an old flat and receive a new, larger one years later at no extra cost. The risks are timing, which can run to a decade, and projects that never start. Buy these only with a lawyer who reads the developer’s agreement with the building and the planning status.
Which is right for a buyer abroad?
If you want a home to use on visits and let in between, with no project management from abroad, a new or recently built apartment is easier. If yield per shekel matters most, a well-chosen second-hand apartment in a good street usually wins. Our board shows both, including projects we are about to market, and we tell you which it is on every listing.
Frequently asked questions
›Is my money safe if the developer goes bankrupt?
Payments secured by a Sale Law bank guarantee are protected; the bank either completes the building or returns the money. Never pay a developer without the guarantee in hand.
›Can I resell an apartment before the building is finished?
Usually yes, with the developer’s consent and a fee. Tax applies on any gain.
›What is the specification (mifrat)?
The legal annex to the contract that lists every material, fitting and finish the developer must deliver. Read it with your lawyer; it is where the real differences between projects hide.
General information, current as of the date shown; not legal or tax advice. Brackets and rates change: check your own situation with an Israeli lawyer or tax adviser before you sign.