Mehir LaMishtaken: the discounted price program explained

20-30% off market price: how does this government program work?

What is Mehir LaMishtaken?

Mehir LaMishtaken (מחיר למשתכן), literally 'price for the resident', is an Israeli government program launched in 2015 to allow first-time buyers to purchase new homes at 20-30% below market price. The principle: the state provides land at reduced prices to developers, who commit to selling homes at capped prices. To understand the context of property prices by city, this program is an important lever.

Eligibility conditions

To be eligible for Mehir LaMishtaken, you must: be an Israeli resident (toshav Israel), not own property in Israel, not have previously benefited from the program, and meet age and family criteria for each tender. Olim hadashim (new immigrants) are eligible from their Aliyah, which is a significant advantage.

Important for international buyers: non-residents are NOT eligible for Mehir LaMishtaken. However, if you're planning your Aliyah, you can benefit once your olé hadash status is obtained. It's one of many real estate advantages of Aliyah.

The application process

The process involves several steps: registration on the Housing Ministry website when a project opens, submission of application with all supporting documents, lottery (hagralah) to select buyers among eligible candidates, and finally signing with the developer if selected. The delay between application and allocation can be 3-12 months.

Advantages and limitations

Advantages: price 20-30% below market, government guarantee on project quality, ability to resell after 5 years. Limitations: long and uncertain process (lottery), limited location choice, personal occupation requirement for the first years (no renting), and restrictive resale conditions.

Alternatives for non-eligible buyers

If you're not eligible for Mehir LaMishtaken, other options exist to buy at a good price: direct negotiation with developers (5-20% margins), 'Dira Lehaskir' programs (apartment for rent, reserved for investors), or buying in peripheral cities where market prices are already very competitive. IsraelStart negotiates the best terms for you through its developer network.

Dira BeHanaha 2026: the program in figures

The program is officially called **Dira BeHanaha** (דירה בהנחה, "discounted apartment") — Mehir LaMishtaken was the previous scheme's name, but the expression is still in common use. The essentials for 2026:\n\n| Indicator | 2026 figure |\n|---|---|\n| Average discount vs market price | 15 to 25% |\n| Cities covered | 40+ (incl. Rishon LeZion, Beersheba, Haifa, Ashkelon) |\n| Price cap per m² (high-demand areas) | ~21,000 ₪/m² |\n| Minimum personal contribution | 100,000 ₪ |\n| Average time from lottery to delivery | 3 to 5 years |\n\n**The principle:** the state auctions land at reduced prices; in return, developers sell part of the units 15 to 25% below market price through a national lottery. In 2026, several thousand units are offered in each lottery round.\n\n**The catch:** timelines are long (expect 3 to 5 years before handover), the most sought-after cities show very low lottery success rates, and resale is locked for 5 years.

Who can apply? Eligibility conditions

The program targets first-time buyers. The main conditions in 2026:\n\n**1. Not owning property.** Neither you nor your spouse may own a home in Israel (or have owned one in recent years, depending on the round).\n\n**2. The eligibility certificate (Ishur Zachaut).** This is the key: issued by accredited bodies (Alohim, Alonim, Milgam), it certifies your "homeless" status. Without it, lottery registration is impossible. Allow 2 to 4 weeks to obtain it.\n\n**3. Olim and residents.** The program is open to Israeli citizens and new immigrants. Non-residents are not eligible — a point many foreign buyers discover too late.\n\n**4. Personal contribution.** Even with the discount, banks require a minimum down payment of around 100,000 ₪ and apply their usual solvency criteria.\n\n**Special case — young couples:** specific quotas are reserved for them in some rounds, with dedicated lotteries. Check the current round's conditions before applying.

The lottery: how it actually works

Forget the idea of a simple form. Here is a candidate's real journey:\n\n**Step 1 — Registration.** Each lottery round lists available projects by city. You register for the projects that interest you (often dozens of candidates per unit in high-demand areas).\n\n**Step 2 — The draw.** Computerized and supervised, it assigns a rank to each candidate per project. Top ranks choose their apartment first.\n\n**Step 3 — Choosing the unit.** When your turn comes (it can take weeks), you visit the project and choose among remaining units. The best units go to the top ranks.\n\n**Step 4 — Signing.** You sign a standard sale contract with the developer at the program's capped price. The bank validates your financing as for a normal purchase.\n\n**Success rates:** in high-demand cities (center of the country), fewer than 5% of registrants secure a unit. In peripheral cities, odds are significantly better — that's the program's real trade-off.

FAQ: Mehir LaMishtaken / Dira BeHanaha

What's the difference between Mehir LaMishtaken and Dira BeHanaha?

Mehir LaMishtaken («target price») was the program launched in 2015. Dira BeHanaha («discounted apartment») is the current scheme, built on the same principle: new homes sold 15 to 25% below market price via lottery. In everyday language, «Mehir LaMishtaken» is still used for both.

Can a non-resident French buyer join the program?

No. The program is reserved for Israeli citizens and new immigrants (olim) without housing. Non-resident foreign buyers are not eligible. If you buy from France without making alyah, the open market applies — with its own negotiation opportunities.

How long between the lottery and delivery?

Allow 3 to 5 years on average between the lottery draw and handover. The program covers projects under construction or to be built. It's a horizon to factor into your life plans before applying.

Can you resell or rent out a Dira BeHanaha apartment?

Not during the lock period: 5 years of mandatory occupancy after handover (or 7 years after the lottery). After that, resale is free at market price, and the capital gain is yours.

What down payment is needed?

Banks require a personal contribution of around 100,000 ₪ minimum, even with the program discount. Your income must also meet their usual solvency criteria for the mashkanta (mortgage).

What are the odds of winning the lottery?

Highly variable by city: under 5% success in high-demand central areas, significantly more in the periphery. Registering for multiple projects across several rounds mechanically improves your chances.

Sources: Israeli Ministry of Housing; Israel Land Authority (RAMI); certifying bodies (Alohim, Alonim, Milgam); market data, October 2026.