Government Policy and Real Estate in Jerusalem — What Changes in 2026

Government decisions made in 2025 and early 2026 directly affect the Jerusalem real estate market. From subsidies for the buyer's price program to successful pinui-binui plans — we have gathered the important decisions for buyers and investors.

Buyer's Price Program 2026 — New Allocations in Jerusalem

The Ministry of Construction and Housing has announced the allocation of 2,200 residential units under the buyer's price program in the Jerusalem area for 2026. The designated neighborhoods include parts of Ramot, Anata, and the nearby Ma'ale Adumim area. Buyer's price: 1,400,000–1,750,000 ₪ for a 4-room apartment — a savings of 30–40% from market price.

Tax Benefits for Jerusalem Residents

Amendment 2025 to the Encouragement of Capital Investments Law does not apply to real estate, but the exemption from capital-gains tax up to 2,000,000 ₪ for a single apartment remains in effect — a significant advantage in a Jerusalem market that has long crossed this threshold in most neighborhoods.

Transportation Plans and Real Estate Impact

The blue light rail route connecting Givat HaMivtar through central Jerusalem to Arnona is expected to complete Phase A by the end of 2027. Neighborhoods along the route — Givat HaMivtar, Nachlaot, Achva — are already recording a preliminary increase of 4–6% in anticipation of the infrastructure.

What is Recommended to Do Now?

Examining eligibility for government programs before free purchase is a necessary step. For all properties in Jerusalem and for professional advice, you can contact the agents at the Property Center.