Israel Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2024-2028

The Construction in Construction in Israel - Key Trends and Opportunities to 2028 (H1 2024) report provides detailed market analysis, information, and insights into Israel’s construction industry, including :

Israel’s construction industry's growth prospects by market, project type and construction activity
Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Israel’s construction industry
Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

The analyst expects the construction industry in Israel to contract by 4.7% in real terms in 2024, following a contraction of 5% in 2023, with the high likelihood of further declines if the construction activity in the short-term is more severely disrupted than currently anticipated. Despite a cumulative growth of 7.5% in Q1-Q3 2023 for the construction value add, in chained prices, the overall decline in 2023 was a result of sharp contraction of 38.5% year-on-year (YoY) in Q4 2023, owing to a sharp reduction in labor and a downturn in investor’s confidence, following the commencement of war with Hamas in early October 2023. Concurrently, with the ongoing war with Hamas afflicting the construction sector, a conflict between Israel and Iran has surfaced in mid-April 2024, that can cause elevated material costs and labor shortages, which will continue to pose further risks to the construction industry in 2024, as the analyst expects the conflicts to continue in the second quarter of 2024. In mid-April 2024, India’s Ministry of External Affairs instructed over 5,000 newly recruited Indian construction workers by Israeli companies not to travel to Israel following the onset of the Israel-Iran war. With the risk of intense operations in 2024, the government is expected to continue to spend high on military needs, which will affect construction activities in the country. In March 2024, the Federation of Israeli Chambers of Commerce announced that the construction industry is undergoing a slowdown of almost 50% in activity.

With subdued investor and consumer confidence continuing in the short to medium-term, the industry’s growth will remain sluggish, but there could be support in line with the government's focus on infrastructure development and investment in the energy and utilities and residential construction projects, which can help recover the construction industry to record an average annual growth of 5.8% between 2025 and 2028. To support the growth of transport infrastructure, the Prime Minister of Israel unveiled the "Infrastructure for Growth 2023" plan in June 2023, which includes the construction of 228 infrastructure projects nationwide with an investment of ILS433 billion ($128.4 billion) by 2027.

Scope

This report provides a comprehensive analysis of the construction industry in Israel’s. It provides :

Historical (2019-2023) and forecast (2024-2028) valuations of the construction industry in Israel, featuring details of key growth drivers.
Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

Identify and evaluate market opportunities using the analyst's standardized valuation and forecasting methodologies.
Assess market growth potential at a micro-level with over 600 time-series data forecasts.
Understand the latest industry and market trends.
Formulate and validate strategy using the analyst's critical and actionable insight.
Assess business risks, including cost, regulatory and competitive pressures.
Evaluate competitive risk and success factors.

1 Executive Summary2 Construction Industry: At-a-Glance

3 Context

3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 Risk Profile

4 Construction Outlook

4.1 All Construction

Outlook
Latest news and developments
Construction Projects Momentum Index

4.2 Commercial Construction

Outlook
Project analytics
Latest news and developments

4.3 Industrial Construction

Outlook
Project analytics
Latest news and developments

4.4 Infrastructure Construction

Outlook
Project analytics
Latest news and developments

4.5 Energy and Utilities Construction

Outlook
Project analytics
Latest news and developments

4.6 Institutional Construction

Outlook
Project analytics
Latest news and developments

4.7 Residential Construction

Outlook
Project analytics
Latest news and developments

5 Key Industry Participants

5.1 Contractors
5.2 Consultants

6 Construction Market Data

7 Appendix

7.1 What is this Report About?
7.2 Definitions
7.3 CRI Methodology

About the Analyst
Contact the Publisher

List of Tables

Table 1: Construction Industry Key Data
Table 2: Israel, Key Economic Indicators
Table 3: Israel, Commercial Construction Output by Project Type (Real % Change), 2019-28
Table 4: Israel, Top Commercial Construction Projects by Value
Table 5: Israel, Industrial Construction Output by Project Type (Real % Change), 2019-28
Table 6: Israel, Top Industrial Construction Projects by Value
Table 7: Israel, Infrastructure Construction Output by Project Type (Real % Change), 2019-28
Table 8: Israel, Top Infrastructure Construction Projects by Value
Table 9: Israel, Energy and Utilities Construction Output by Project Type (Real % Change), 2019-28
Table 10: Israel, Top Energy and Utilities Construction Projects by Value
Table 11: Israel, Institutional Construction Output by Project Type (Real % Change), 2019-28
Table 12: Israel, Top Institutional Construction Projects by Value
Table 13: Israel, Residential Construction Output by Project Type (Real % Change), 2019-28
Table 14: Israel, Top Residential Construction Projects by Value
Table 15: Israel, Key Contractors
Table 16: Israel, Key Consultants
Table 17: Israel, Construction Output Value (Real, $ Million)
Table 18: Israel, Construction Output Value (Nominal, ILS Million)
Table 19: the analyst Construction Market Definitions
Table 20: Risk Dimensions
Table 21: Ratings, Scores and Definitions

List of Figures

Figure 1: Middle East and North Africa, Construction Output (Real % Change), 2022-28
Figure 2: Israel, Construction Output by Sector (Real % Change), 2022-24 and 2025-28
Figure 3: Israel, Risk Summary
Figure 4: Israel, Risk Regional Comparison
Figure 5: Israel, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2019-28
Figure 6: Israel, Construction Output Value, by Sector (Real, $ Million), 2019-28
Figure 7: Israel, Gross Fixed Capital Formation in Construction (ILS Million, at 2015 Chained Prices)
Figure 8: Israel, Construction Value Add (ILS Million, 2015 Chained Prices)
Figure 9: Israel, Unemployment (In thousands)
Figure 10: Israel, Construction Projects Momentum Index
Figure 11: Middle East and North Africa, Construction Projects Momentum Index
Figure 12: Israel, Commercial Construction Output by Project Type (Real, $ Million), 2019-28
Figure 13: Israel, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 14: Israel, Wholesale and Retail Trade, Accommodation and Food Services Value Add (ILS Million, 2015 Chained Prices)
Figure 15: Israel, Total Tourist Arrivals (In Thousands)
Figure 16: Israel, Total Area Authorized for Office Buildings (In Thousands m2)
Figure 17: Israel, Industrial Construction Output by Project Type (Real, $ Million), 2019-28
Figure 18: Israel, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 19: Israel, Manufacturing Value Add (ILS Million, 2015 Chained Prices)
Figure 20: Israel, Total Area Authorized for Manufacturing and Storage Premises (In Thousands m2)
Figure 21: Israel, Total Export Value (ILS, Million)
Figure 22: Israel, Infrastructure Construction Output by Project Type (Real, $ Million), 2019-28
Figure 23: Israel, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
Figure 24: Israel, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2019-28
Figure 25: Israel, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
Figure 26: Israel, Institutional Construction Output by Project Type (Real, $ Million), 2019-28
Figure 27: Israel, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
Figure 28: Israel, Total Area Authorized for New Education and Healthcare Buildings
Figure 29: Israel, Residential Construction Output by Project Type (Real, $ Million), 2019-28
Figure 30: Israel, Residential Construction Projects Pipeline, Value by Stage ($ Million)
Figure 31: Israel, Gross Fixed Capital Formation in Residential Buildings (ILS Million, at 2015 Chained Prices)
Figure 32: Israel, Total Authorized Residential Area (Thousand m2)
Figure 33: Israel, Housing Construction Inputs Prices Index (2004=100)
Figure 34: Israel, Total Authorized Area on which Construction works of New Residential Buildings have started (Thousand m2)
Figure 35: Israel, Headquarters of Key Contractors (% of Total Project Pipeline)

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Scope

This report provides a comprehensive analysis of the construction industry in Israel’s. It provides :

Reasons to Buy

Table of Contents

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