Where Is the Money Flowing? Foreign Investment Trends in Property: Europe Compared With Israel
In recent years we have seen a deep shift in property investment patterns among foreign buyers, both in Europe and in Israel. Private investors, families and developers are reconsidering where it makes sense to buy, not only on yield grounds but with a broader view of economic stability, regulation, taxation, international accessibility and quality of life.
In this article I share accumulated knowledge and extensive research I have carried out, based on official data, current market reports and analysis of trends on the ground, in order to present a clear and objective picture of property purchases by foreign residents. The aim is not to make blanket recommendations, but to enable informed decisions grounded in a deep understanding of the trends.
Main trends in Europe
In Europe foreign residents are a significant player in the market, particularly in destination markets such as Spain, Portugal, Greece, Italy and France, for primary living as well as for holiday use and long term investment. Countries such as Spain report historic highs in foreign purchases, with a rise in the price per square metre that foreign buyers pay compared with locals, mainly in tourist areas and along the coast. At the same time, some countries restrict foreign purchases, so the trend is not uniform: certain markets are very open to foreign buyers while others protect the local market.
Main trends in Israel
In Israel purchases by non residents make up a relatively small share, in the region of 2 percent of residential transactions, although with a sharp rise over the past year. In 2024 it was estimated that around 1,900 homes were bought by non residents, an increase of roughly 50 percent on the previous year, mainly in Jerusalem and in the higher priced segment. Tax policy and regulation are designed to curb speculative demand, so the weight of non residents remains limited: more than 80 percent of transactions in Israel are carried out by Israeli residents.
Comparison: Europe and Israel
In Europe foreign residents are a central engine in tourist markets and in markets seen as an economic safe haven, and they create a broad layer of demand. In Israel non residents are a small niche, with a strong influence mainly in prime areas, in cities such as Jerusalem and Tel Aviv and within community oriented segments. Most foreign buyers in Europe concentrate along the Mediterranean and in the larger cities, while in Israel purchases centre on Jerusalem and on prime and coastal areas.
What Israeli buyers look for in Cyprus
- Israelis have established themselves as a leading investor group, with thousands of properties bought since 2021, mainly in coastal towns such as Paphos, Larnaca and Limassol.
- Most transactions are new apartments in modern developments, holiday villas and townhouses, combining personal holiday use with tourist rental, with expected yields in the region of 5 to 7 percent a year.
- The main reasons: geographical proximity to Israel, short flights, an accessible language and culture, a familiar banking system, and residency programmes for investors that offer a route to residency in the European Union.
What Israeli buyers look for in Greece
Greece has seen a sharp rise in Israeli activity, including companies and development groups leading transactions worth hundreds of millions of euros a year. Israelis buy apartments in Athens, luxury villas along the Athenian Riviera, hotels and holiday homes on islands such as Mykonos, and entire buildings for renovation and rental. A significant share of these purchases is linked to Golden Visa incentives, a minimum investment that grants a visa and residency.
Data on foreign property investors in Cyprus
According to official reports and industry analysis, in 2023 around 6,900 properties were registered to foreign buyers, an increase of roughly 16 percent on 2022. In 2024 around 6,228 purchases were registered in the names of foreign buyers. According to the Audit Office report, 27 percent of all purchase transactions in 2024 were made by buyers from outside the European Union.
| Country of origin | Estimated share of transactions |
|---|---|
| United Kingdom | approx. 25 to 30 percent |
| Russia | approx. 15 to 20 percent |
| Israel | approx. 10 to 12 percent |
| Greece and Europe | approx. 10 to 15 percent |
| Lebanon | approx. 6 to 8 percent |
| China and Asia | approx. 5 to 7 percent |
In summary
Anyone considering property in Cyprus for a secure investment or for relocation needs to understand the map of investor interests across Europe. Whether it is villas for sale in Paphos or luxury apartments in Limassol, the market is on an upward trend. We at O.C Real Estate invite you to explore new developments directly from the developer and to enjoy professional guidance throughout the process.