Israel Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H2 2025)
Description
Israel Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H2 2025)
Summary
The construction industry in Israel is estimated to have grown by 12.9% in real terms in 2025, owing to a low base effect, coupled with improved permitting, large-scale reconstruction in conflict-affected areas, and rising investment in energy and infrastructure sectors. According to Israel’s Central Bureau of Statistics (CBS), the construction industry’s value-add grew sharply by 14.4% year-on-year (YoY) in H1 2025, preceded by an annual growth rate of 12.4% in 2024. In July 2025, the government has allocated major funding-including ILS17.5 billion ($4.6 billion) for rebuilding southern settlements, ILS15 billion ($4 billion) for northern revitalization, and an ILS5.2 billion ($1.3 billion) border wall project-alongside subsidies for thousands of new homes.
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 March 2025, the government announced plans to add 100,000 solar roofs by 2030, expected to generate 1.6GW of new solar capacity and significantly increase installations. This initiative supports the goal of reaching 18GW to 23GW of solar capacity by 2030. Growth will also be supported by the government’s plan announced in December 2024 to invest ILS15 billion ($4 billion) over the next five years, with ILS4 billion ($1.1 billion) in 2025 alone, to rehabilitate and rebuild the northern part destroyed in war.
GlobalData’s Construction in Israel - Key Trends and Opportunities to 2029 (H2 2025) report provides detailed market analysis, information, and insights into Israel’s construction industry, including -
This report provides a comprehensive analysis of the construction industry in Israel. It provides -
Summary
The construction industry in Israel is estimated to have grown by 12.9% in real terms in 2025, owing to a low base effect, coupled with improved permitting, large-scale reconstruction in conflict-affected areas, and rising investment in energy and infrastructure sectors. According to Israel’s Central Bureau of Statistics (CBS), the construction industry’s value-add grew sharply by 14.4% year-on-year (YoY) in H1 2025, preceded by an annual growth rate of 12.4% in 2024. In July 2025, the government has allocated major funding-including ILS17.5 billion ($4.6 billion) for rebuilding southern settlements, ILS15 billion ($4 billion) for northern revitalization, and an ILS5.2 billion ($1.3 billion) border wall project-alongside subsidies for thousands of new homes.
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 March 2025, the government announced plans to add 100,000 solar roofs by 2030, expected to generate 1.6GW of new solar capacity and significantly increase installations. This initiative supports the goal of reaching 18GW to 23GW of solar capacity by 2030. Growth will also be supported by the government’s plan announced in December 2024 to invest ILS15 billion ($4 billion) over the next five years, with ILS4 billion ($1.1 billion) in 2025 alone, to rehabilitate and rebuild the northern part destroyed in war.
GlobalData’s Construction in Israel - Key Trends and Opportunities to 2029 (H2 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.
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
- 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
52 Pages
- 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, 2020 Chained Prices)
- Figure 8: Israel, Unemployment (In thousands)
- Figure 9: Israel, Employment in Construction Industry (In thousands)
- Figure 10: Israel, Total Area Authorized for Residential and Non-Residential Buildings (Thousands m2)
- Figure 11: Israel, Total Area Authorized for Residential and Non-Residential Buildings on Which Construction Were Started (Thousands m2)
- Figure 12: Israel, Construction Projects Momentum Index
- Figure 13: Middle East and North Africa, Construction Projects Momentum Index
- Figure 14: Israel, Commercial Construction Output by Project Type (Real, $ Million), 2020–29
- Figure 15: Israel, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 16: Israel, Wholesale and Retail Trade, Accommodation and Food Services Value-Add (ILS Million, 2020 Chained Prices)
- Figure 17: Israel, Total International Tourist Arrivals
- Figure 18: Israel, Total Area Authorized for Office Buildings (In Thousands m2)
- Figure 19: Israel, Total Area Authorized for Office Buildings on which construction started (In Thousands m2)
- Figure 20: Israel, Industrial Construction Output by Project Type (Real, $ Million), 2020–29
- Figure 21: Israel, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 22: Israel, Manufacturing, Mining and Quarrying Value-Add (ILS Million, 2020 Chained Prices)
- Figure 23: Israel, Total Area Authorized for Manufacturing and Storage Premises (Thousands m2)
- Figure 24: Israel, Total Area Authorized for Manufacturing and Storage Premises on which construction started (Thousands m2)
- Figure 25: Israel, Total Export Value (ILS, Million)
- Figure 26: Israel, Infrastructure Construction Output by Project Type (Real, $ Million), 2020-29
- Figure 27: Israel, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 28: Israel, Gross Fixed Capital Formation in roads and other infrastructure, including railways, ILS Million, at 2020 Chained Prices)
- 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, 2020 Chained Prices)
- Figure 33: Israel, Gross Fixed Capital Formation of water, energy, and communication, ILS Million, at 2020 Chained Prices)
- Figure 34: Israel, Institutional Construction Output by Project Type (Real, $ Million), 2020-29
- Figure 35: Israel, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 36: Israel, Total Area Authorized for education and healthcare buildings (In Thousands m2)
- Figure 37: Israel, Total Area Authorized for education and healthcare buildings on which construction started (In Thousands m2)
- Figure 38: Israel, Residential Construction Output by Project Type (Real, $ Million), 2020-29
- Figure 39: Israel, Residential Construction Projects Pipeline, Value by Stage ($ Million)
- 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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