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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 2029 (H1 2025)

Publisher GlobalData
Published Jun 12, 2025
SKU # GBDT20187090

Description

Israel Construction Market Size, Trends, and Forecasts by Sector – Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H1 2025)

Summary

The construction industry in Israel is projected to grow by 12.9% in 2025, owing to a low base effect, following significant declines in 2023 and 2024 due to the ongoing conflict with Hamas-led Palestinian militant groups in the Gaza Strip and southern Israel. The Central Bureau of Statistics (CBS) reports that the construction industry experienced a loss of ILS98 billion ($26 billion) in 2024, which represented about 4.9% of GDP and nearly 45% of the industry's output. Since the war began in the latter half of 2023, the Israeli construction industry had incurred losses totaling ILS131 billion ($34.8 billion). Additionally, the government suspended 80,000 Palestinian workers' permits, which had a significant negative impact on the industry in 2024. Furthermore, the Ministry of Finance of Israel indicated in January 2025 that the total government debt reached ILS1.3 trillion ($352.9 billion) in 2024, marking a 17.9% increase compared to the same period in 2023. These elements could continue to pose downside risks for the industry in the short to medium term.

The construction industry in Israel is expected to register an average annual growth of 5.3% from 2026 to 2029, driven by investments in transportation infrastructure, energy, and housing projects, and the government's target of generating 30% of electricity from renewables by 2030, compared to 13% in 2023. In line with this, in February 2025, the government awarded 1.5GW of battery storage energy projects across the country; with an estimated cost of ILS3 billion ($796.3 million), these projects are expected to be completed by 2027. Also, in January 2025, local energy company Dalia Energy revealed it plans to construct an 850MW power plant in Ashdod at an estimated cost of ILS5.3 billion ($1.4 billion).

GlobalData’s Construction in Israel – Key Trends and Opportunities to 2029 (H1 2025) 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 (2020–2024) and forecast (2025–2029) 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 GlobalData'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 Summary
2 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
8 About GlobalData
9 Contact Us
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), 2020–29
Table 4: Israel, Top Commercial Construction Projects by Value
Table 5: Israel, Industrial Construction Output by Project Type (Real % Change), 2020–29
Table 6: Israel, Top Industrial Construction Projects by Value
Table 7: Israel, Infrastructure Construction Output by Project Type (Real % Change), 2020-29
Table 8: Israel, Top Infrastructure Construction Projects by Value
Table 9: Israel, Energy and Utilities Construction Output by Project Type (Real % Change), 2020-29
Table 10: Israel, Top Energy and Utilities Construction Projects by Value
Table 11: Israel, Institutional Construction Output by Project Type (Real % Change), 2020-29
Table 12: Israel, Top Institutional Construction Projects by Value
Table 13: Israel, Residential Construction Output by Project Type (Real % Change), 2020-29
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: GlobalData 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), 2023–29
Figure 2: Israel, Construction Output by Sector (Real % Change), 2023–25 and 2026–29
Figure 3: Israel, Risk Summary
Figure 4: Israel, Risk Regional Comparison
Figure 5: Israel, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2020–29
Figure 6: Israel, Construction Output Value, by Sector (Real, $ Million), 2020–29
Figure 7: Israel, Construction Value-add (ILS Million, 2015 Chained Prices)
Figure 8: Israel, Gross Capital Formation in Construction (ILS Million, 2015 Chained Prices)
Figure 9: Israel, Unemployment (In thousands)
Figure 10: Israel, Employment in Construction Industry (In thousands)
Figure 11: Israel, Israel, Total Area Authorized for Residential and Non-Residential Buildings (Thousands m2)
Figure 12: Israel, Total Area Authorized for Residential and Non-Residential Buildings on Which Construction Were Started (Thousands m2)
Figure 13: Israel, Construction Projects Momentum Index
Figure 14: Middle East and North Africa, Construction Projects Momentum Index
Figure 15: Israel, Commercial Construction Output by Project Type (Real, $ Million), 2020–29
Figure 16: Israel, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 17: Israel, Wholesale and Retail Trade, Accommodation and Food Services Value-Add (ILS Million, 2015 Chained Prices)
Figure 18: Israel, Total International Tourist Arrivals
Figure 19: Israel, Total Area Authorized for Office Buildings (In Thousands m2)
Figure 20: Israel, Total Area Authorized for Office Buildings on which construction started (In Thousands m2)
Figure 21: Israel, Industrial Construction Output by Project Type (Real, $ Million), 2020–29
Figure 22: Israel, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 23: Israel, Manufacturing, Mining and Quarrying Value-Add (ILS Million, 2015 Chained Prices)
Figure 24: Israel, Total Area Authorized for Manufacturing and Storage Premises (Thousands m2)
Figure 25: Israel, Total Area Authorized for Manufacturing and Storage Premises on which construction started (Thousands m2)
Figure 26: Israel, Total Export Value (ILS, Million)
Figure 27: Israel, Infrastructure Construction Output by Project Type (Real, $ Million), 2020-29
Figure 28: Israel, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
Figure 29: Israel, Road and Bridging Construction Inputs Prices Index (2011=100)
Figure 30: Israel, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2020-29
Figure 31: Israel, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
Figure 32: Israel, Information and Communication Value-Add (ILS Million, 2015 Chained Prices)
Figure 33: Israel, Institutional Construction Output by Project Type (Real, $ Million), 2020-29
Figure 34: Israel, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
Figure 35: Israel, Total Area Authorized for education and healthcare buildings (Thousands m2)
Figure 36: Israel, Total Area Authorized for Education and Healthcare Buildings on Which Construction Were Started (Thousands m2)
Figure 37: Israel, Residential Construction Output by Project Type (Real, $ Million), 2020-29
Figure 38: Israel, Residential Construction Projects Pipeline, Value by Stage ($ Million)
Figure 39: Israel, Gross Capital Formation in Residential Buildings (ILS Million, 2015 Chained Prices)
Figure 40: Israel, Total Authorized Residential Area (Thousand m2)
Figure 41: Israel, Total Authorized Area on which Construction Works of New Residential Buildings have Started (Thousand m2)
Figure 42: Israel, Housing Construction Inputs Prices Index (2011=100)
Figure 43: Israel, Housing Loans (in ILS Million)
Figure 44: Israel, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 45: Israel, Headquarters of Key Consultants (% of Total Project Pipeline)

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