What is Israel’s Housing Lottery and How Can I Benefit From It?

Israel’s housing lottery, officially called Dira b’Hanacha (Apartment at a Discount), is a government program that gives eligible buyers the chance to purchase new apartments at below-market prices. It’s aimed at helping young families, first-time buyers, and other qualifying groups access affordable housing across the country.

While Dira B’Hanacha is the current version, earlier initiatives—like Mechir LeMishtaken and Mishkanot LeMishtatfim—offered similar opportunities, each with slight differences in rules and benefits. The goal of Israel’s housing lottery has always remained the same: to make homeownership possible for those who might otherwise be priced out of the market.

How does the lottery work?

Several times a year, the Ministry of Housing opens a lottery round (machzor), listing new developments across the country. Applicants can register for all projects in up to 3 cities of their choice. Winners are chosen randomly and given the right to purchase a discounted apartment from the contractor.

Winning doesn’t mean you get a free home, or that the government covers your mortgage—it simply gives you access to a set apartment at a significantly reduced price.

Who is eligible?

The program is open to rishonim le-dira—people who do not currently own and have not owned a home in Israel in the last 3 years.

Specifically:

• You must be an Israeli citizen, aged 18 or older.
• You must be married (or getting married within three months); single over 35; or divorced with a child living with you.
• New for the upcoming lottery (2025): if you are a widow/widower under 35 (even without children), you are eligible for the lottery.
• New for the upcoming lottery (2025): if you have completed 60 days or more of reserve duty since October 7 — and especially those serving in combat units (lochem) — you will receive a higher ranking in the lottery system, increasing your chances of winning.

In some cases, after one year, any unsold apartments may become available to meshaprei diur (those upgrading from a current home), under similar terms.

How do I apply?

To enter a lottery, you must first obtain a teudat zakaut (eligibility certificate), which confirms that you meet the criteria. This can be done online through the Milgam, Maof, or Amidor companies.

Once approved, you can register for active lotteries during the registration window—usually a few weeks. After the results are announced, you wait for the builders Heter B’niya, choose your apartment, sign the contract, and arrange financing.

Where are the apartments located?

Projects are located throughout the country, including large cities in central locations, like Jerusalem, Tel Aviv, and Haifa, as well as growing cities in less sought-after areas, like Be’er Sheva and Afula, and smaller towns and communities in the periphery. The locations vary with each lottery round and depend on which developments have been approved.

Is it really a win?

Discounts often range from NIS 200,000 to NIS 800,000, with some buyers paying 25–30% less than market value. In central Israel, where prices can put homeownership out of reach for first-time buyers, these savings can be game-changing.

Under normal circumstances, buying a home in Israel typically requires a minimum down payment of 25%, with the remaining amount financed through a mortgage. In the lottery program, however, the down payment is as low as 100,000 NIS for apartments under ₪1.4 Million Shekel (for apartments between ₪1,450,000 and ₪1,800,000, the mortgage can be as high as ₪1,350,000 with the remainder paid as down payment. Over 1.8M, you get a regular 75% mortgage).

Are there any downsides?

Yes. Despite the benefits, there are several important drawbacks to consider:

• Delays: Apartments are won “on paper” when you buy, meaning city building approvals and construction time, which take years.
• Mortgage/ Rent Overlap: While the apartment is being built, you are still paying rent on your existing apartment and paying parts of the mortgage while the apartment is being built.
• Rising costs: Though the price is discounted, it’s often linked to the madad (Construction Cost Index), which can rise over time, increasing your final payment.
• No guarantee: Most applicants don’t win in any given lottery round. It may take years of trying to get selected.
• Limited choice: You must buy where the lottery places you, and you may have little say over apartment size, floor, or neighbors.
• Resale restrictions: You’re generally required to hold the apartment for at least five years from receiving Tofes 4 (Occupancy Authorization Form), or seven years from the lottery date—whichever comes first, before you can sell.

For many families, these trade-offs are worth it. Despite the uncertainty and delays, the program remains one of the most viable ways to become a homeowner in Israel’s competitive market.

Tzvi Gleiberman contributed to this Guide.