Reply To: Saying L’shana Haba’ah B’Yerushalayim in Eretz Yisroel

Of course. The tefilla implies that next year we should be in Yerushalayim so that we can do the Avoda properly. Even people who live in E”Y and Yerushalayim want to see the Beis Hamikdash rebuilt and the shechina return, and are in galus until that happens, so the tefilla is still just as appropriate as it is in Chutz Laaretz.
Which is why when people sing it, no matter where they live, they say “L’Shana Haba’a B’Yerushalayim Habnuya”