Israel to offer 20,000 discounted homes to army reservists

The Israeli government announced on Sunday a plan to offer approximately 20,000 discounted apartments or plots of land to army reservists over the next two years. Officials stated the initiative is designed to expand benefits for those who have served during the country's ongoing conflicts. Prime Minister Benjamin Netanyahu, alongside Construction and Housing Minister Yitzhak Goldknopf and Finance Minister Bezalel Smotrich, unveiled the 'From Reserve Duty to Keys' programme. Under this scheme, roughly 16,000 apartments will be offered through the state’s 'Target Price' programme, alongside 4,000 plots for independent home construction in 2026 and 2027. The government claims successful applicants could receive discounts exceeding 500,000 shekels (approximately £105,000) on new homes. The 'Target Price' programme, formerly known as 'Buyer’s Price', allows eligible first-time buyers to purchase new apartments via state lotteries at below-market rates. Reservists have been granted priority in recent lotteries; many have served hundreds of days since the war began. In the most recent draw, 25,354 reservists registered, with 4,734 winning. The new plan increases the quota for reservists to 75 percent of available apartments, up from 50 percent previously. The scheme also enhances land-purchase benefits in 'National Priority Area A', which includes parts of the Galilee and areas surrounding the Gaza Strip and Lebanon border that have been targeted by Hamas and Hezbollah. Reservists in these areas will be exempt from land costs, though they must cover development fees. Netanyahu stated these measures recognise the sacrifices of reservists and assist those without homes, noting that the government has already allocated 25 billion shekels to reservists and their families. 'This is huge news for 20,000 reservists who do not own a home,' he said. The announcement arrives ahead of the 27 October elections and follows growing anger over government efforts to codify military exemptions for the ultra-Orthodox community. Criticism has been particularly sharp within the Religious Zionism party, led by Smotrich. An estimated 72,000 Haredi men aged 18 to 24 are currently eligible for service but have not enlisted, while the military has stated it urgently requires 12,000 new recruits. Israel’s housing market has slowed over the past year due to the multi-front war, high interest rates, and a surplus of unsold new homes. Despite this, property prices remain high, having risen by hundreds of percent over the last two decades, leaving homeownership out of reach for many.