The first thing that has to be understood before saying whether it is a good investment or not to buy property or real estate in Israel, is that buying property -anywhere in the world- is always a big investment and that is why many things have to be taken into account before entering into such operations.
Being that said, the first thing that has to be analyzed is the housing business market in israel. As many countries in the world, Israel's housing is highly developed in the center area, where most of the people and companies dwell.
In that manner, the most expensive properties can be found in the Tel Aviv area, where the average price for property is around $ 800,000, followed by Jerusalem where the average price is around $ 630;000. The cheapest place currently is Be'er Sheva, where the average price of property is around u$s300,000.
Another thing to take into account is that according to a Report made by the Ministry of Housing and Construction in 2015, regarding the population the annual growth rate is %2 and regarding the number of households, the growth rate is 50,000 a year.
In recent years, this rise in the demand, combined with a low rate of supply of households made the prices go really high. As an example, according to official numbers, as of the end of 2008 and to the end of 2015, the housing prices rose by 75% in real terms.
With this information taken into account, it can be said that buying property in Israel is a good investment, although many other things have to be considered and it is always important to assess all the data with current numbers and professionals in the field before deciding to enter the market.