Israel Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Israel Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Summary

The construction industry in Israel is estimated to have expanded by 9.2% in real terms in 2022, supported by strong construction output in the first nine months of 2022, combined with the progressive implementation of public infrastructure projects in 2022. According to the Central Bureau of Statistics (CBS), the industry’s value add grew by 11.8% year on year (YoY) in the first nine months of 2022, with construction works of new buildings growing by 12.5% YoY during the same period. The growth momentum is expected to continue into 2023, with the industry expected to expand by 4% this year, supported by an increase in the number of construction permits, coupled with investment in transport infrastructure and energy construction projects. According to the CBS, permits issued for construction purposes grew by 16.9% YoY in the first nine months of 2022. However, the industry faces downside risks in 2023, owing to high material costs, supply chain disruption, rising inflation, and high unemployment. According to the CBS, the housing construction inputs prices rose by 6.2% YoY in the first eleven months of 2022.

Over the remainder of the forecast period, the construction industry is expected to register an annual average growth rate of 2.8% between 2024-27, supported by government’s focus on the development of transport infrastructure, energy and utilities construction projects and residential projects. In July 2022, the government launched a Housing Program 2022-25, worth ILS21 billion ($6.3 billion). The program involves construction of 500,000 housing units in the regions including Tel Aviv, Jerusalem, Haifa, North Israel and South Israel. The government plans to complete the construction works by the end of 2025. The program is a part of the governments’ wider goal of building six million units by 2040. Additionally, the industry’s output will be supported by the government’s plan to invest ILS123.6 billion ($34.9 billion) to increase the rail network to 2,572km by 2040

This 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

Scope

This report provides a comprehensive analysis of the construction industry in Israel. It provides -

• Historical (2018-2022) and forecast (2023-2027) 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 GlobalData'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 GlobalData's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.