French Buyers Up 55%, British Up 54% as Dollar Weakness Cuts US Demand in Israel
French purchases jumped to 130 apartments in Q1 2026, British buyers rose to 57 as American share dropped to 49%.
French purchases of Israeli property surged 55% year-on-year in the first quarter of 2026, reaching 130 apartments compared to 84 in the same period of 2025, while British buyers rose 54% to 57 units from 37, according to data released in May 2026 by the Finance Ministry's Chief Economist's Office. American buyers, by contrast, comprised 49 percent of all foreign property purchases in the first quarter of 2026, compared to 60% a year earlier. The shift reflects a 13.6% depreciation of the US dollar against the Israeli shekel, which effectively made Israeli real estate significantly more expensive for buyers relying on American currency.
A sharp decline in the value of the US dollar has cooled American demand for Israeli real estate in recent months, while purchases by French and British nationals have surged, marking the first time the Israeli government has published a detailed breakdown of foreign property purchases by passport-issuing country. The data reveals a fundamental reshaping of israel's foreign buyer base, with European buyers gaining ground as currency headwinds erode US purchasing power.
American Purchases Decline in Volume and Market Share
American buyers bought 238 apartments in the first quarter of 2026, compared to 248 during the same period in 2025, a modest numerical decline that masks a more significant erosion in market share. The 11-percentage-point drop from 60% to 49% of all foreign purchases represents a structural shift in buyer composition, driven largely by currency dynamics rather than reduced interest in Israeli property.
60% of the apartments purchased by Americans in jerusalem in Q1 2026 were new apartments, with a median price of NIS 5.95 million. In the secondary market, this price was also relatively high, standing at NIS 4.2 million. American buyers continue to target premium properties in Jerusalem and Beit Shemesh, but the stronger shekel has raised effective dollar-denominated entry costs by more than local price declines have offset.
French and British Buyer Geography: Coastal Cities Lead
The city that led in French purchases in Q1 2026 was Netanya, with 35 apartments. Jerusalem and Tel Aviv followed, with 28 apartments purchased in each. French buyers are spreading activity across a wider geographic footprint than American buyers, targeting coastal cities and mixed neighborhoods rather than concentrating exclusively in religious or Anglo enclaves.
The French now account for more than a quarter of all foreign buyer purchases (26.7%), compared with only about one-fifth in the same period last year. British buyers, while smaller in absolute numbers, demonstrated proportionally stronger growth, rising from 37 to 57 units quarter-on-quarter. Both groups benefited from relatively modest currency depreciation: the euro weakened against the shekel by only 4% over the same period the dollar fell 13.6%, preserving purchasing power for eurozone and sterling-based buyers.
Currency Dynamics Reshape Buyer Purchasing Power
The Shekel gained 8.6% against the Canadian Dollar, 6.7% against the US dollar and the Jordanian Dinar, 5.6% against the Japanese yen, 3.9% against the British Pound Sterling, 2.7% against the Euro and by 1.2% against the Swiss Franc during 2025, according to israel's Central Bureau of Statistics. The shekel's strength continued into 2026: as of Israel's 2026 Independence Day (April 22), the exchange rate stands at around 3.00 shekels to the dollar, and 3.51 shekels to the euro.
For American buyers, a ₪3 million apartment that cost roughly $1 million at the 2025 exchange rate of ₪3.50 per dollar now costs approximately $1,000,000 at ₪3.00 per dollar, effectively neutralizing any local price softness. French and British buyers faced smaller currency headwinds, preserving relative affordability and explaining the surge in transaction volume.
The shekel has strengthened almost 25% against the pound in a single year, according to economist Matthew Salter, though this figure reflects a longer measurement window than the Finance Ministry's quarterly data. Even accounting for timing differences, pound-based buyers experienced a less severe shock than dollar buyers, and the gap in currency performance drove the divergence in purchase activity.
Total Foreign Purchase Volume and Composition
Buyers from the United States, France, and the United Kingdom accounted for 87% of all residential properties purchased by foreign citizens during the first three months of the year. The remaining 13% of foreign purchases came primarily from Canada, with 16 purchases in Q1 2026, and Australia (10), both of which saw their currencies weaken against the shekel, limiting transaction growth.
The Finance Ministry report marks the first official government breakdown of foreign buyer nationality, providing a baseline for tracking diaspora investment flows. Prior to this release, anecdotal evidence and brokerage reports provided the only visibility into buyer composition by country, making year-on-year comparisons impossible before Q1 2025.
What This Means for Olim and Diaspora Buyers in Late 2026
For readers planning Aliyah or considering property purchases from abroad, the Q1 2026 data offers several planning insights. First, currency timing matters: dollar-based buyers face a 13.6% currency headwind compared to Q1 2025, while euro-based buyers face only 4%. Waiting for exchange-rate shifts may offset local price changes, but predicting currency movements over 6–12 month horizons is inherently uncertain.
Second, the gap between American and French buyer budgets is widening. French buyers are also spending less than Americans, an average of NIS 2.8 million per apartment compared to NIS 5.1 million for Americans in Jerusalem. This suggests French buyers are targeting mid-market inventory in Netanya, Ashdod, and outer Tel Aviv, while American buyers remain concentrated in premium Jerusalem stock. New Olim from France and the UK may find more inventory options at accessible price points than American buyers targeting the same cities.
Third, the shift in buyer composition may influence developer pricing strategies. Projects marketed heavily to American buyers in Jerusalem and Beit Shemesh may face softer demand if currency dynamics persist, while coastal projects attractive to French buyers may see sustained activity. For buyers negotiating directly with developers, understanding which nationality a project is marketed toward can reveal pricing flexibility.
| Buyer Nationality | Q1 2025 Purchases | Q1 2026 Purchases | YoY Change | Share of Foreign Purchases Q1 2026 |
|---|---|---|---|---|
| United States | 248 | 238 | -4.0% | 49% |
| France | 84 | 130 | +54.8% | 26.7% |
| United Kingdom | 37 | 57 | +54.1% | 11.7% |
| Canada | — | 16 | — | 3.3% |
| Australia | — | 10 | — | 2.1% |
Shekel Strength Outlook and Buyer Strategy Through 2027
Forecasts suggest the pound could remain under pressure against the shekel in the near term, with some projections pointing to the exchange rate hovering in the NIS 3.90– NIS 4.10 range through 2026. For dollar buyers, exchange-rate forecasts are more uncertain, but the shekel's strength is underpinned by robust defense exports, tech-sector foreign currency inflows, and reduced geopolitical risk premia following stabilization in security conditions.
Buyers planning purchases in late 2026 or early 2027 should model scenarios at ₪3.00–₪3.10 per dollar and ₪3.90–₪4.10 per pound, rather than assuming a return to 2024 exchange rates. Currency hedging products are available through Israeli banks' diaspora desks, though fees and minimum transaction sizes apply. For Olim making one-time property purchases, the cost of hedging may exceed the benefit unless the transaction is above ₪4 million.
FAQ: Common Questions About Foreign Buyer Trends in 2026
Why did American buyer market share drop if the number of purchases only fell slightly? American purchases declined from 248 to 238 apartments quarter-on-quarter, but total foreign purchases rose due to the surge in French and British activity. American buyers therefore represented a smaller share of a larger total pool, causing the 11-percentage-point market-share drop from 60% to 49%.
Are French and British buyers paying less per apartment than Americans? Yes. French buyers paid an average of ₪2.8 million per apartment in Q1 2026, while Americans paid ₪5.1 million in Jerusalem specifically. French buyers are targeting mid-market coastal inventory in Netanya, Ashdod, and Tel Aviv suburbs, while Americans concentrate in premium Jerusalem new-build projects.
Will the shekel stay strong through 2027? Exports of services (particularly hi-tech services and the sale of startup companies) maintain their strength, and defense exports contribute significantly to foreign currency inflows. The Bank of Israel has signaled no urgency to weaken the currency through intervention. Most forecasters expect the shekel to trade in the ₪3.00–₪3.20 range against the dollar through mid-2027, though external shocks could shift this range.
Should I wait for the dollar to strengthen before buying? Timing currency movements is inherently speculative. For Aliyah-bound buyers, the decision to purchase should be driven by housing need, Aliyah timeline, and long-term residency plans rather than short-term exchange-rate forecasts. Dollar buyers who defer purchases hoping for favorable currency moves risk missing inventory in target neighborhoods or facing local price increases that offset currency gains.
Further reading: Hebrew Level for Aliyah Work: What Changed Since 2020 — AliyaToday.
Further reading: Israel Water Technology 2026: Before and After the Global Desalination Shift — Jewish News Now.
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Solly Marks is an Israeli property analyst and publisher writing for diaspora Jewish buyers and investors. JewishPropertyReport covers real estate prices, buying guides, and market data across Israel — practical intelligence for overseas buyers.