It's very understandable the Ottomans would be cautious about foreigners from Western Europe moving into the Holy Land, Christian or Jewish. There was a history of Crusades, a whole series of wars over Turkish occupied Europe, and the whole process of expanding European Colonial Empires in every part of the world.

The idea that the purchase of land by a foreigner would imply a right to evict a tenant farmer would not have been seen favourably by the Ottoman authorities, as also would have been the case be in many parts of Europe. It underlay the turmoil of the Land League movement in Ireland, culminating in reforms that removed this right.

One thing that needs to be appreciated that there is a historical precedent for the establishment of Israel - the Crusader States established in what is now Israel and Lebanon existed for longer than Israel has, and are now merely historical memorie.
Consciousness of this underly and reinforce the feeling that Israel too is a temporary intrusion into the region.

Israel at present does have the possibility of reaching a two-state solution which would ensure the continued existence of a predominently Jewish state. But if that opportunity is not taken there is a real possibility that the experience of the Crusader States could be repeated.