When The Times of Israel reported in December that a Jewish community in New York had purchased two entire residential towers under construction in central Jerusalem, many in the local real estate industry raised their eyebrows in shock. For developers specializing in projects for English-speaking buyers abroad, however, the acquisition of 200 apartments for a tight-knit Sephardic community was a logical step in a market increasingly driven by foreign buyers. Even as Israel’s domestic housing market cools amid rising costs and ongoing security concerns, demand from overseas has soared in the wake of the October 7, 2023, Hamas onslaught and...