TORONTO — The investment potential of Israeli companies, particularly those of the cutting-edge high-tech variety, is not exactly a closely-guarded secret anymore.

But it turns out there’s another kind of Israeli investment that has done quite well in recent months, holding its value as stock markets around the world tumbled.

Israeli real estate has done better than most other ventures, and it turns out people from around the world see it as a legitimate asset to add to their portfolio. Last weekend, potential investors in Toronto got to view what their counterparts in London, Milan, New York, Johannesburg and Los Angeles have already seen – a spiel by a number of Israeli developers and law firms extolling the virtues of Israeli residential properties.

Israeli real estate firms Ezorim, Gindi Holdings, Dimri Building & Development, Pollock Real Estate and Ashdar Building Company were among the participants at “the largest Israeli real estate exhibition” at the Park Hyatt Hotel.

The event marked the first time Israeli developers offered their product directly to Toronto investors, said Ainnat Lifshitz, director of marketing and sales of Bayit4U, coordinator of the event. Organized in conjunction with Bayit BeIsrael, an Israeli real estate consulting company, the event “brings companies to Canada, including bank representatives and lawyers, who give a panoramic view of Israel and cover all aspects of real estate, including legal, financial and availability issues,” she said.

The focus of the exhibitors was on residential properties, which have been good performers as of late. In the last quarter in Israel, housing prices rose five per cent. Demand for homes was up 14.6 per cent in April 2009 over the same period in 2008, Lifshitz said.

“People realize that Israeli real estate [values] stood still during this economic crisis,” she stated. “That’s because of Israeli consumer behaviour and because Israel is small and there are not enough projects for the country.”

For people in the Diaspora, purchasing a second home in Israel fulfills a dream of residing in the Holy Land while others see it in financial terms. Still other investors see it as a hedge against local anti-Semitism. Bayit BeIsrael has been quite successful in marketing Israeli product, with the exhibition in London generating interest that eventually led to 100 purchases, she said.

Whether that level of success is duplicated in Toronto remains to be seen.