Israel Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast to 2030 (H1 2026)

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Published: June 23, 2026 Report Code: GDCN1860MR-ST

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The construction industry in Israel is expected to decline by 1.5% in real terms in 2026, owing to rising unemployment and elevated construction costs, amid the ongoing multifront war in the country, coupled with a decrease in budgetary allocation for the infrastructure sector, to focus on the defence sector due to the ongoing war. Israel’s construction and infrastructure sectors are facing higher material prices, project delays, labor and financing constraints, and a shift in government spending toward defence, civil protection, and resilience infrastructure. According to the latest data issued by the Central Bureau of Statistics (CBS), the total area authorized for the construction of buildings fell by 13.9% year-on-year (YoY) in Q4 2025, preceded by YoY growth rate of 6.1% in Q3 and a decline of 3.4% in Q2 2025. According to the CBS, the total area authorized for the construction of buildings on which construction started fell marginally by 0.2% YoY in Q4 2025, preceded by YoY growth rates of 14.7% in Q3 and 50.3% in Q2 2025

The construction industry in Israel is expected to register an average annual growth of 4.7% from 2027 to 2030, driven by investments in transport infrastructure, energy, and housing projects. Among the recent developments, in May 2026, the government approved more than ILS1 billion ($270 million) to construct roads linking new settlements in the occupied territory. Furthermore, Israel’s national roads company, Netivei Israel, in January 2026, issued large-scale construction tenders worth ILS8 billion ($2.4 billion) for multiple road infrastructure projects, marking a significant expansion of highway and transport capacity. The programme includes upgrading and widening key intercity roads, constructing new interchanges, and improving junctions and traffic flows. Among the projects in the tenders are the improvement of the stretch of Road 44 between Beit Dagan and Nir Zvi and in the Beit Dagan Interchange area, with an investment of ILS2.4 billion ($710.8 million).

GlobalData’s Construction in Israel – Key Trends and Opportunities to 2030 (H1 2026) report provides detailed market analysis, information, and insights into Israel's construction industry, including:_x000D_
• Israel's construction industry's growth prospects by market, project type and construction activity_x000D_
• 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_x000D_
• 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 (2021–2025) and forecast (2026–2030) 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_x000D_

Assess market growth potential at a micro-level with over 600 time-series data forecasts_x000D_

Understand the latest industry and market trends_x000D_

Formulate and validate business strategies using GlobalData's critical and actionable insight_x000D_

Assess business risks, including cost, regulatory and competitive pressures_x000D_

Evaluate competitive risk and success factors

Table of Contents

1 Executive Summary_x000D_

2 Construction Industry: At-a-Glance_x000D_

3 Context_x000D_

3.1 Economic Performance_x000D_

3.2 Political Environment and Policy_x000D_

3.3 Demographics_x000D_

3.4 Risk Profile_x000D_

4 Construction Outlook_x000D_

4.1 All Construction_x000D_

– Outlook_x000D_

– Latest news and developments_x000D_

– Construction Projects Momentum Index_x000D_

4.2 Commercial Construction_x000D_

– Outlook_x000D_

– Project analytics_x000D_

– Latest news and developments_x000D_

4.3 Industrial Construction_x000D_

– Outlook_x000D_

– Project analytics_x000D_

– Latest news and developments_x000D_

4.4 Infrastructure Construction_x000D_

– Outlook_x000D_

– Project analytics_x000D_

– Latest news and developments_x000D_

4.5 Energy and Utilities Construction_x000D_

– Outlook_x000D_

– Project analytics_x000D_

– Latest news and developments_x000D_

4.6 Institutional Construction_x000D_

– Outlook_x000D_

– Project analytics_x000D_

– Latest news and developments_x000D_

4.7 Residential Construction

Table

Table 1: Construction Industry Key Data

Table 2: Israel, Key Economic Indicators

Table 3: Israel, Commercial Construction Output by Project Type (Real % Change), 2021–30

Table 4: Israel, Top Commercial Construction Projects by Value

Table 5: Israel, Industrial Construction Output by Project Type (Real % Change), 2021–30

Table 6: Israel, Top Industrial Construction Projects by Value

Table 7: Israel, Infrastructure Construction Output by Project Type (Real % Change), 2021–30

Table 8: Israel, Top Infrastructure Construction Projects by Value

Table 9: Israel, Energy and Utilities Construction Output by Project Type (Real % Change), 2021–30

Table 10: Israel, Top Energy and Utilities Construction Projects by Value

Table 11: Israel, Institutional Construction Output by Project Type (Real % Change), 2021–30

Table 12: Israel, Top Institutional Construction Projects by Value

Table 13: Israel, Residential Construction Output by Project Type (Real % Change), 2021–30

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: GlobalData Construction Market Definitions

Table 21: Ratings, Scores and Definitions

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), 2021–30

Figure 27: Israel, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)

Figure 28: Israel, Road and Bridging Construction Inputs Prices Index (2011=100)

Figure 29: Israel, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2021–30

Figure 30: Israel, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)

Figure 31: Israel, Information and Communication Value-Add (ILS Million, 2020 Chained Prices)

Figure 32: Israel, Gross Fixed Capital Formation of water, energy, and communication, ILS Million, at 2020 Chained Prices)

Figure 33: Israel, Institutional Construction Output by Project Type (Real, $ Million), 2021–30

Figure 34: Israel, Institutional Construction Projects Pipeline, Value by Stage ($ Million)

Figure 35:  Israel, Total Area Authorized for education and healthcare buildings (In Thousands m2)

Figure 36: Israel, Total Area Authorized for education and healthcare buildings on which construction started (In Thousands m2)

Figure 37: Israel, Residential Construction Output by Project Type (Real, $ Million), 2021–30

Figure 38: Israel, Residential Construction Projects Pipeline, Value by Stage ($ Million)

Figure 39: Israel, Total Authorized Residential Area (Thousand m2)

Figure 40: Israel, Total Authorized Area on which Construction Works of New Residential Buildings have Started (Thousand m2)

Figure 41:  Israel, Housing Construction Inputs Prices Index (VII/2025=100)

Figure 42: Israel, Headquarters of Key Contractors (% of Total Project Pipeline)

Figure 43: Israel, Headquarters of Key Consultants (% of Total Project Pipeline)

Table 1: Construction Industry Key Data

Table 2: Israel, Key Economic Indicators

Table 3: Israel, Commercial Construction Output by Project Type (Real % Change), 2021–30

Table 4: Israel, Top Commercial Construction Projects by Value

Table 5: Israel, Industrial Construction Output by Project Type (Real % Change), 2021–30

Table 6: Israel, Top Industrial Construction Projects by Value

Table 7: Israel, Infrastructure Construction Output by Project Type (Real % Change), 2021–30

Table 8: Israel, Top Infrastructure Construction Projects by Value

Table 9: Israel, Energy and Utilities Construction Output by Project Type (Real % Change), 2021–30

Table 10: Israel, Top Energy and Utilities Construction Projects by Value

Table 11: Israel, Institutional Construction Output by Project Type (Real % Change), 2021–30

Table 12: Israel, Top Institutional Construction Projects by Value

Table 13: Israel, Residential Construction Output by Project Type (Real % Change), 2021–30

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: GlobalData Construction Market Definitions

Table 21: Ratings, Scores and Definitions

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), 2021–30

Figure 27: Israel, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)

Figure 28: Israel, Road and Bridging Construction Inputs Prices Index (2011=100)

Figure 29: Israel, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2021–30

Figure 30: Israel, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)

Figure 31: Israel, Information and Communication Value-Add (ILS Million, 2020 Chained Prices)

Figure 32: Israel, Gross Fixed Capital Formation of water, energy, and communication, ILS Million, at 2020 Chained Prices)

Figure 33: Israel, Institutional Construction Output by Project Type (Real, $ Million), 2021–30

Figure 34: Israel, Institutional Construction Projects Pipeline, Value by Stage ($ Million)

Figure 35:  Israel, Total Area Authorized for education and healthcare buildings (In Thousands m2)

Figure 36: Israel, Total Area Authorized for education and healthcare buildings on which construction started (In Thousands m2)

Figure 37: Israel, Residential Construction Output by Project Type (Real, $ Million), 2021–30

Figure 38: Israel, Residential Construction Projects Pipeline, Value by Stage ($ Million)

Figure 39: Israel, Total Authorized Residential Area (Thousand m2)

Figure 40: Israel, Total Authorized Area on which Construction Works of New Residential Buildings have Started (Thousand m2)

Figure 41:  Israel, Housing Construction Inputs Prices Index (VII/2025=100)

Figure 42: Israel, Headquarters of Key Contractors (% of Total Project Pipeline)

Figure 43: Israel, Headquarters of Key Consultants (% of Total Project Pipeline)

Figures

Figure 1: Middle East and North Africa, Construction Output (Real % Change), 2024–30

Figure 2: Israel, Construction Output by Sector (Real % Change), 2024–26 and 2027–30

Figure 3: Israel, Risk Summary

Figure 4: Israel, Risk Regional Comparison

Figure 5: Israel, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2021–30

Figure 6: Israel, Construction Output Value, by Sector (Real, $ Million), 2021–30

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), 2021–30

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), 2021–30

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), 2021–30

Figure 27: Israel, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)

Figure 28: Israel, Road and Bridging Construction Inputs Prices Index (2011=100)

Figure 29: Israel, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2021–30

Figure 30: Israel, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)

Figure 31: Israel, Information and Communication Value-Add (ILS Million, 2020 Chained Prices)

Figure 32: Israel, Gross Fixed Capital Formation of water, energy, and communication, ILS Million, at 2020 Chained Prices)

Figure 33: Israel, Institutional Construction Output by Project Type (Real, $ Million), 2021–30

Figure 34: Israel, Institutional Construction Projects Pipeline, Value by Stage ($ Million)

Figure 35:  Israel, Total Area Authorized for education and healthcare buildings (In Thousands m2)

Figure 36: Israel, Total Area Authorized for education and healthcare buildings on which construction started (In Thousands m2)

Figure 37: Israel, Residential Construction Output by Project Type (Real, $ Million), 2021–30

Figure 38: Israel, Residential Construction Projects Pipeline, Value by Stage ($ Million)

Figure 39: Israel, Total Authorized Residential Area (Thousand m2)

Figure 40: Israel, Total Authorized Area on which Construction Works of New Residential Buildings have Started (Thousand m2)

Figure 41:  Israel, Housing Construction Inputs Prices Index (VII/2025=100)

Figure 42: Israel, Headquarters of Key Contractors (% of Total Project Pipeline)

Figure 43: Israel, Headquarters of Key Consultants (% of Total Project Pipeline)

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