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Construction in Israel - Key Trends and Opportunities to 2023

Construction in Israel - Key Trends and Opportunities to 2023

Summary

Israel’s construction industry suffered a downturn in 2018, contracting by 0.5% in real terms that year, following an average annual growth of 4.0% during 2014-2017. According to the Central Bureau of Statistics (CBS), the country’s fixed capital formation in residential buildings declined by 8.9% at 2015 chained prices in the first nine months of 2018 (the latest data available at the time of writing), compared to the same period in 2017, going from ILS63.5 billion (US$17.7 billion) in January-September 2017 to ILS57.9 billion (US$16.1 billion) in January-September 2018; this was preceded by annual growth rates of 1.9% and 9.1% in 2017 and 2016 respectively.

Consequently, the country’s construction output, measured at constant 2017 US dollar exchange rates, declined from US$41.5 billion in 2017 to US$41.3 billion in 2018; this decline can be attributed to low public and private sector investments in construction projects, slowdown in new home sales and deceleration in fixed assets investment in residential buildings.

Israel’s construction industry is expected to record positive growth over the forecast period (2019-2023), driven by the government’s plans to upgrade the country’s transport infrastructure. The industry’s output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 2.63% over the forecast period. The industry is consequently expected to rise from a value of US$41.3 billion in 2018 to US$47.0 billion in 2023, measured at constant 2017 US dollar exchange rates.

In addition, public and private sector investments in energy, commercial, industrial and healthcare infrastructure construction projects are expected to support growth in the industry over the forecast period. The government’s investment under the five-year infrastructure development program 2017-2021 is also expected to support the industry’s growth over the forecast period. The government plans to invest ILS116.0 billion (US$32.4 billion) to develop the country’s infrastructure by 2021.

Residential construction was the largest market in the Israeli construction industry during the review period, accounting for 57.8% of its total value in 2018. The market is expected to retain its position over the forecast period, and account for 55.4% of the industry’s total value in 2023. Institutional construction accounted for 11.0% of the industry’s total output in 2018, followed by commercial construction with 10.6%, infrastructure construction with 8.5%, energy and utilities construction with 8.0% and industrial construction with 4.2%.

The report Construction in Israel - Key Trends and Opportunities to 2023, provides detailed market analysis, information and insights into the Peruvian 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
Scope
  • This report provides a comprehensive analysis of the construction industry in Israel.
  • Historical (2014-2018) and forecast (2019-2023) 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.


  • Executive Summary
  • Construction Outlook: At-a-glance
    • Table Construction Outlook
    • Table Figure 1:Key Markets, Construction Output Growth Matrix and Risk Matrix
    • Table Figure 2:Israel, Construction Projects Pipeline by Sector (ILS Billion)
  • Latest News and Indicators
    • Table Figure 3:Gross Domestic Capital Formation in Non-Residential buildings and Other Construction Works (ILS Million)
    • Table Figure 4:Total Building Permit Issued (In Thousand m2)
  • Key Drivers and Risks
    • Economic Performance
      • Table Israel, Key Economic Indicators
    • Political Environment
    • Demographics
    • Risk Profile
      • Table Figure 5:Israel, Risk Profile
      • Table Figure 6:Israel, Risk Comparison
  • Construction Outlook
    • All Construction
      • Outlook
        • Table Figure 7:Israel, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate)
        • Table Figure 8:Israel, Construction Output Value, Growth Matrix
        • Table Figure 9: Israel, Construction Output Value, by Sector (ILS Million), 2014-2023
      • Project analytics
        • Table Figure 10: Israel, Construction Projects Pipeline, Projected Annual Spending by Stage (ILS Million), 2018-2023
        • Table Figure 11: Israel, Construction Projects Pipeline, Value by Stage (ILS Million)
        • Table Israel, Construction Output Value (nominal, ILS Million)
        • Table Israel, Construction Output Value (nominal, US$ Million)
    • Commercial Construction
      • Outlook
        • Table Figure 12: Israel, Commercial Construction Output by Project Type (ILS Million), 2014-2023
      • Project analytics
        • Table Figure 13: Israel, Commercial Construction Projects Pipeline, Value by Stage (ILS Million)
        • Table Figure 14: Israel, Commercial Construction Projects Pipeline, Projected Annual Spending by Stage (ILS Million), 2018-2023
        • Table Israel, Top Commercial Construction Projects by Value
    • Industrial Construction
      • Outlook
        • Table Figure 15: Israel, Industrial Construction Output by Project Type (ILS Million), 2014-2023
      • Project analytics
        • Table Figure 16: Israel, Industrial Construction Projects Pipeline, Value by Stage (ILS Million)
        • Table Figure 17: Israel, Industrial Construction Projects Pipeline, Projected Annual Spending by Stage (ILS Million), 2018-2023
        • Table Israel, Top Industrial Construction Projects by Value
    • Infrastructure Construction
      • Outlook
        • Table Figure 18: Israel, Infrastructure Construction Output by Project Type (ILS Million), 2014-2023
      • Project analytics
        • Table Figure 19: Israel, Infrastructure Construction Projects Pipeline, Value by Stage (ILS Million)
        • Table Figure 20: Israel, Infrastructure Construction Projects Pipeline, Projected Annual Spending by Stage (ILS Million), 2018-2023
        • Table Israel, Top Infrastructure Construction Projects by Value
    • Energy and Utilities Construction
      • Outlook
        • Table Figure 21: Israel, Energy and Utilities Construction Output by Project Type (ILS Million), 2014-2023
      • Project analytics
        • Table Figure 22: Israel, Energy and Utilities Construction Projects Pipeline, Value by Stage (ILS Million)
        • Table Figure 23: Israel, Energy and Utilities Construction Projects Pipeline, Projected Annual Spending by Stage (ILS Million), 2018- 2023
        • Table Israel, Top Energy and Utilities Construction Projects by Value
    • Institutional Construction
      • Outlook
        • Table Figure 24: Israel, Institutional Construction Output by Project Type (ILS Million), 2014-2023
      • Project analytics
        • Table Figure 25: Israel, Institutional Construction Projects Pipeline, Value by Stage (ILS Million)
        • Table Figure 26: Israel, Institutional Construction Projects Pipeline, Projected Annual Spending by Stage (ILS Million), 2018-2023
        • Table Israel, Top Institutional Construction Projects by Value
    • Residential Construction
      • Outlook
        • Table Figure 27: Israel, Residential Construction Output by Project Type (ILS Million), 2014-2023
      • Project analytics
        • Table Figure 28: Israel, Residential Construction Projects Pipeline, Value by Stage (ILS Million)
        • Table Figure 29: Israel, Residential Construction Projects Pipeline, Projected Annual Spending by Stage (ILS Million), 2018-2023
        • Table Israel, Top Residential and Mixed-Use Construction Projects by Value
  • Key Industry Participants
    • Contractors
      • Table Israel, Key Contractors
      • Table Figure 30: Israel, Headquarters of Key Contractors (% of
      • Table Figure 31: Israel, Headquarters of Foreign Contractors (%
    • Consultants
      • Table Israel, Key Consultants
      • Table Figure 32: Israel, Headquarters of Key Consultants (% of Total Project Pipeline)
      • Table Figure 33: Israel, Headquarters of Foreign Consultants (% of Project Pipeline with Foreign Consultants)
  • Appendix
    • What is this Report About?
    • Definitions
      • Table GlobalData Construction Market Definitions
      • Table Construction Risk Index Ratings and Scores
  • About GlobalData
    • GlobalData at a Glance
      • Table Figure 34: GlobalData at a Glance
    • GlobalData Construction
    • Disclaimer
    • Contact Us

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