"As with any investment, knowledge is power." Real estate appraiser Nechama Bogin debunks the myths of the real estate market

Nechama Bogin is one of Israel’s leading real estate appraisers, a lawyer, and the chair of the Israel Association of Real Estate Appraisers. In the current episode of the radio program “Seeing Far,” which focuses on real estate investments, finance, thereal estate marketin Greece, and how to build a financial future, Bogin discusses the challenges of the real estate market in Israel and the important factors to consider before investing in real estate abroad, stating that “a real estate appraiser is the only professional who can synthesize all aspects of a property and provide a complete picture of its value.”

The latest episode of the radio program “Building Far,” hosted by media personality Merav Miller and Palmo founder and CEO Aviv Cohen, featured guest Nechama Bogin, a real estate appraiser, legal expert, and chair of the Israel Association of Real Estate Appraisers. What did Bogin have to say about the key challenges facing the real estate market in Israel? What is the importance of a real estate appraiser in a property purchase transaction? And what are the aspects that should never be overlooked when investing in real estate abroad? 

Housing Prices in Israel: Significant Increases, But Not Everywhere

The real estate market in Israel has been on a steady upward trend, with an average annual growth rate of about 8% in recent years. However, Bogin notes that “there are areas where prices have fallen, particularly for large apartments in Tel Aviv, as well as in cities such as Eilat, Netanya, and Ashkelon.” According to her, “The Israeli market is volatile. Despite the general upward trend, prices in certain areas are actually stabilizing or falling.”

An interesting statistic noted by Bogin is that Herzliya has overtaken Tel Aviv to become the most expensive city, with an average apartment price of about 4 million shekels. “In contrast, in cities like Be’er Sheva, Ashkelon, and Haifa, it is still possible to find apartments for less than 1 million shekels.”

According to her, the interest rate hikes over the past year have had a significant impact on the market. "When interest rates rise, monthly payments increase and the ability to take out mortgages decreases. The result is a decline in the number of transactions." At the same time, many developers are delaying projects due to economic uncertainty, which could lead to a more severe housing shortage and continued price increases.

"Investing in overseas real estate is an option that should be considered carefully"

Given the high prices in Israel, many investors are looking for alternatives abroad. Buying real estate in Greece is a popular choice for Israeli investors due to more affordable prices and attractive returns.

Bugin notes that “there is no doubt that investing abroad is a worthwhile alternative for many. However, it is very important to work with a professional and experienced advisor who is familiar with the local market; otherwise, it is easy to fall into legal and financial traps.”

Investing in real estate in a foreign country is not without risks. Alongside the potential profits, there are bureaucratic and administrative challenges. “Regulatory changes, such as those that recently occurred in Greece, can affect the economic viability of short-term rental properties. The investment must be well-informed,” notes Bogin.

Bugin emphasizes that a successful investment requires in-depth research and tailoring to the investor’s needs. “There is no one-size-fits-all investment. You need to understand the purpose of the purchase—is it an income-generating rental property, a long-term investment, or a property for personal use?”

"Many investors are tempted by low prices without checking the tax laws," notes Bogin. "It is essential to understand exactly how much purchase tax, capital gains tax, and rental income tax must be paid, because each state has different rules."

Property management is another key consideration. "A property that seems like a good investment can turn into a headache if it isn't managed by a professional. You need to check whether there are reliable management companies, what their fees are, and what services they offer."

Bugin also emphasizes the importance of assessing regional demand. "Investing in an area with no demand can result in a property that cannot be rented out. It is essential to determine whether there is significant tourism in the area, whether there is a local population seeking rental housing, and what the growth projections are."

Unfortunately, says Bogin, “People buy apartments overseas because of the promise of high returns, but if they don’t conduct thorough due diligence, they may find themselves with a property they don’t know how to sell or manage. As with any investment, knowledge is power.”

"A real estate appraiser is the eyes of investors"

Bugin emphasizes the importance of the appraiser’s role in investment decision-making, stating that “the appraiser is the only professional who can evaluate a property from all angles—legal, engineering, financial, and physical.”

Real estate appraisal in Israel requires academic training, specialized training, and certification exams. "This is a specialized group of about 2,000 certified appraisers nationwide, but they play a critical role for both private investors and financial institutions and government agencies."

Bugin emphasizes that determining a property’s value is not merely a matter of comparing prices. “Some properties appear attractive, but a thorough examination reveals registration issues, building code violations, liens, or geographical risks. A professional appraiser provides the investor with a clear and objective picture.”

Even private investors looking to rent out a property need an appraisal. "Investors often fail to take into account maintenance costs, taxes, and the ability to rent out the property at the desired price. An appraiser also assesses whether the area is developing and if new infrastructure is planned."

In short, says Bogin, “A real estate appraiser provides the buyer with a layer of protection against costly mistakes and enables the investor to make an informed decision based on facts.”

Women in the Appraisal Industry – A Growing Trend

Although the field of appraisals is traditionally considered a male-dominated profession, Bogin notes that there has been an increase in the number of women entering the field: "Today we are seeing more and more women entering the world of appraisals, and this is a welcome change."

According to her, women bring diverse perspectives, enhanced management skills, and exceptional multitasking abilities to the table. They often succeed in bridging gaps between developers, tenants, and local authorities, and in coming up with creative solutions.

Despite the positive change, there is still a long way to go toward equality. "When I started out, there were almost no women in the industry. Today, only about a quarter of certified appraisers are women."

This shift also stems from a growing recognition of the importance of workforce diversity. "Employers are beginning to realize that women bring important qualities such as attention to detail, interpersonal communication, and the ability to handle complex negotiations. In fields such as demolition and reconstruction and urban renewal, for example, which require communication skills and emotional intelligence, women excel in particular."

Bugin states, “I want to see more women in senior positions in real estate appraisal, development, and investment. It’s a fascinating profession, and any woman considering this field should know that there’s a place for her here.”

Challenges and Solutions: How Can the Situation in the Israeli Housing Market Be Improved?

The Association of Real Estate Appraisers, headed by Bogin, is working to promote legislation aimed at streamlining processes in the real estate market. “One of the biggest challenges is shortening planning and construction procedures, which are holding back market recovery,” she says.

According to her, bureaucracy in Israel leads to significant delays in projects. "In many countries, the process of obtaining a building permit takes several months, whereas in Israel it can sometimes take 3–5 years. This means that the housing supply is not keeping pace with population growth, which leads to rising prices."

The Bureau is promoting regulations that will allow for expedited procedures in certain cases. "We are working to ensure that, for certain projects—particularly in urban renewal—the permitting process will be more flexible."

At the same time, Bogin points out the need for government programs that encourage the construction of rental housing. "If the government provides tax breaks and incentives to developers who build long-term rental apartments, we can create a more stable market."

One of the leading proposals is the implementation of the Agreed Valuation Law, which allows property owners required to pay a betterment tax of up to 90,000 NIS to negotiate directly with the municipal appraiser, rather than getting caught up in costly legal proceedings. "This law enables a simpler, fairer process—and, above all, one that will prevent unnecessary backlogs in the courts."

Conclusion: Caution, professionalism, and sound judgment

Is investing in real estate in Israel still worthwhile? Is it better to look for options abroad? There is no clear-cut answer, but as Bogin sums up: "The key is to choose professional advisors, know the market well, and ensure that you make decisions based on data rather than just gut feelings. That is the surest path to success in the real estate market."