According to data and analysis published by the international real estate giant LLG, the volume of Israeli capital invested in the European real estate sector in 2023 reached $1.3 billion, placing Israel in 8th place globally in terms of real estate investments in Europe.
The UK ranks as the top investment destination for Israelis in Europe, with Spain, Germany, and the Netherlands also appearing in the top five.

Real Estate Investments in Europe – How Europe Became a Leading Investment Destination for Israeli Investors

The growing volume of real estate investments in Europe stems from the situation in Israel’s real estate market, the accessibility of overseas investments, and the reduction of geographical and bureaucratic barriers. Additionally, the European Union’s policies provide significant advantages for real estate investments in Europe.

The Israeli real estate market is characterized by some of the highest property prices globally, a high investment threshold, and expensive financing costs. In light of these factors, investors and capital owners are constantly searching for the next investment destination, one that offers diverse real estate investment opportunities, accommodates different types of investors according to their initial capital and investment goals, and, of course, provides higher return potential. It is evident that European real estate investments have addressed the needs of many investors, both from Israel and worldwide.

Key Considerations When Choosing a Real Estate Investment Destination in Europe:

– Economic Growth: Review the economic state and growth rates of the target country over at least 3-5 years and invest in countries with consistent growth, which indicates economic resilience and stability.
– Government Policy: Examine legislation, restrictions, and government policies in the target country regarding foreign real estate investors.
– Taxation: Conduct an in-depth analysis of the tax obligations associated with the property, including whether the country has a tax treaty with Israel to prevent double taxation. Tax planning for real estate transactions in Europe is complex and requires professional expertise, making it essential to consult experienced professionals.
– Market Analysis: Analyze the local real estate market according to investment objectives and property types: average property costs, expected yields, rental costs, maintenance expenses, and overall profitability calculations.

Identifying High-Demand Areas: After mapping all the data, profitability calculations, and deciding to invest in European real estate, the next step involves identifying high-demand areas with the greatest potential to minimize risks and maximize returns.

Advantages for Investors

Investing in real estate in European countries offers numerous benefits for Israeli investors.

• Market Size: Compared to Israel, which has a population of around 9 million, European real estate investment destinations offer significantly larger markets. For example, the UK has a population of approximately 56 million, and Spain has about 48 million.
• Land Reserves: The available land reserves in Europe are far larger than in Israel, leading to lower land costs, which in turn reduces property costs for investors.
• High Rental Demand: Most real estate investments in Europe are concentrated in Western Europe, in countries with strong tourism, leading academic institutions attracting students and young people, low unemployment rates, and high employment levels. These factors result in consistent positive migration, which in free real estate markets translates into high rental costs for investment properties.
• Geographical Proximity: Europe is a short flight from Israel, making it accessible for Israeli investors to visit, assess projects, and familiarize themselves with the environment without relying solely on promotional materials.

SDB Real Estate Investment Platform and Services for Israeli Investors

Investments in general, and particularly overseas real estate investments, require a combination of in-depth legal and financial expertise and practical knowledge about the target countries, their bureaucratic systems, environmental characteristics, and average socio-economic conditions.

Unlike Israelis purchasing an investment apartment locally for steady income or retirement purposes, and minimizing risks with the option of residing in the property if needed, European real estate investments target a different audience with distinct characteristics and objectives.

SDB Real Estate Investments offers a variety of real estate investment projects in Europe, focusing on the UK and Spain. The platform provides a comprehensive professional and legal framework with full investor protection.

Advantages of Investing in SDB Real Estate Development Projects

Low Investment Threshold: Compared to the high thresholds required for independent real estate investments.
Expert Selection of Projects: Properties and projects are carefully selected by professionals familiar with the local market, operating under a conservative and detailed business plan.
Prime Locations: All projects are in prime locations with high-demand residential environments.
Professional Management: Investments are managed by top professionals, including financial and investment experts, analysts, and legal advisors.
Periodic Reporting: Full transparency with regular updates on investment data.
Fair Profit Distribution: Profits are distributed fairly and transparently at project completion based on each investor’s relative share in the project.
Types of Projects

The available projects include diverse initiatives in vibrant metropolitan cities in the UK and Spain. These projects encompass residential buildings, commercial properties, and office complexes developed on newly acquired land or purchased for renovation and expansion, with aims to lease or sell post-improvement.