Market Research Report
Construction in Israel - Key Trends and Opportunities to 2023
|Published by||GlobalData||Product code||800128|
|Published||Content info||52 Pages
Delivery time: 1-2 business days
|Construction in Israel - Key Trends and Opportunities to 2023|
|Published: February 26, 2019||Content info: 52 Pages||
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 -