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Israel Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2028 (H2 2024)

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    Report

  • 47 Pages
  • December 2024
  • Region: Israel
  • GlobalData
  • ID: 5767964

The Construction in Israel - Key Trends and Opportunities to 2028 (H2 2024) report provides detailed market analysis, information and insights into the Israeli construction industry, including:

  • The Israeli 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 the Israeli 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 construction industry in Israel is estimated to contract by 6.7% in real terms in 2024, owing to rising geopolitical and economic uncertainty caused by the ongoing war with the Hamas and Iran. The weakness in the construction industry is also caused by labour shortages and a decline in investor confidence. In September 2024, the Israeli government announced its interest in recruiting approximately 10,000 construction workers from India, along with 5,000 caregivers, to fill their skill gap in the infrastructure and healthcare sector. The government has taken this decision amid suspension of the work permits of thousands of Palestinian workers following the October 2023 Hamas attack.

The analyst expects the construction industry in Israel to rise by 12.9% in real terms in 2025, owing to a low base effect. The industry is further expected to stabilize at an average annual rate of 3.7% from 2026 to 2028, supported by investments in renewable energy, commercial. residential and infrastructure sectors.

As the market starts to recover, the government announced in September 2024 its plan to invest ILS500 million ($133.3 million) for the development of a national artificial intelligence (AI) research institute in the country by 2027. Despite the challenges, Israel's tech sector continues to show resilience to attract global investments. The government of Israel approved a plan in August 2024, proposed by the Ministry of Finance and the Ministry of Transport and Road Safety. The plan involves the expansion of the Highway 6 northward, construction of 22km of dual-carriageway, three-lane road and the construction of three new interchanges in Evlayim, Makr, and Beit HaEmek

Scope

This report provides a comprehensive analysis of the construction industry in Israel. 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 our 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 business strategies using the analyst's critical and actionable insight
  • Assess business risks, including cost, regulatory and competitive pressures
  • Evaluate competitive risk and success factors

Table of Contents

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, Construction Value-add (ILS Million, 2015 Chained Prices)
Figure 8: Israel, Gross Fixed Capital Formation in Construction (ILS Million, at 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 the Construction of 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)
Figure 36: Israel, Headquarters of Key Consultants (% of Total Project Pipeline)