Building in Israel

How to build your house?

First and foremost, it is obviously a matter of finding and purchasing the land intended for construction and verifying

Many costs related to infrastructure will need to be anticipated from the start: earthworks, paving of the road, installation of water pipes, connection to sewage, electrical connection, gas, and telecommunications systems, …

List of documents required prior to construction:

-A building permit issued by the local authorities is generally valid for 3 years. This document will specify the location and number of the plot, as well as the name of the buyer (new owner).

-The construction plan, the plan, and the development program of the municipality or region in which the land to be built is located.

-The construction plan must include authorization from the electricity company, the water company, and the telecommunications companies.

-These authorizations are mandatory and prerequisite for construction as well as for obtaining the government housing loan (Mashkenta).

Without these authorizations, the construction carried out will be demolished and at your expense.

BUDGET

Building a home obviously involves notary fees, banking fees, land registry fees, cadastral fees, file fees, etc., just like the acquisition of any housing. It is highly recommended to also budget for unforeseen expenses.

You will only be able to obtain a construction loan in certain municipalities. The list of these municipalities is available from your bank. The housing loan (Mashkenta) cannot be granted in the case of real estate construction.

You will then need to take out an additional bank loan. However, this can only cover 40% to 60% of the price of the land.

Note: all stages in the progress of the work will be evaluated by a construction expert approved by the bank or by the construction engineer responsible for your project.