https://www.jpost.com/jerusalem-report/article-721768
Many consider freehold ownership optimal. Owners do not have to pay rent or fees to a landowner, and they can benefit from better capital appreciation over the long term. But unlike in the US where freehold ownership is fairly standard, only a small fraction of Israeli citizens own the land they live on.
In fact, the Israeli government owns 93% of the country’s land. This ownership structure originated in 1948, when Israel was founded as a meager nation-state. It came about amid government fears that someone would buy out the land and ultimately overrule the authorities.
Today, the Israel Land Authority leases land for a period of 49 years, usually with an option to extend the lease for another 49. It does not sell it, but the state does grant property owners title to the land they live on. So practically speaking, there is no meaningful distinction between freehold and leasehold arrangements in Israel.