Residential Real Estate - Israel | Statista Market Forecast

The Residential Real Estate market market in Israel is anticipated to attain a value of US$2.18tn in 2024.
This projection indicates a projected compound annual growth rate (CAGR 2024-2029) of 6.01%, which would result in a market volume of US$2.91tn by 2029.
In comparison to other countries, China is expected to generate the highest value in the Real Estate sector, reaching US$112.9tn in 2024.
The residential real estate market in Israel is experiencing a surge in demand due to favorable government policies and a growing population.

Definition:

The residential real estate market covers the leases and transactions of residential properties. Residential real estate leases refer to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums, while residential real can be defined as buying, selling, or transfer of ownership of residential properties.

Structure:

The residential real estate market covers real estate transactions and leases, and the section, residential real estate leases, is divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and for real estate renters as well.

Residential real estate transactions
Residential real estate leases

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

Israel's Residential Real Estate market has been experiencing significant development and growth in recent years. Customer preferences in the market are driven by several factors. Firstly, there is a strong demand for housing due to a growing population and an increasing number of households. This has led to a need for more residential properties, particularly in urban areas. Additionally, there is a preference for modern and well-designed homes that offer a high standard of living. Customers are also seeking properties that are located in close proximity to amenities such as schools, shopping centers, and public transportation. Trends in the market show a shift towards urban living. As more people are moving to cities for work and lifestyle opportunities, there is a growing demand for residential properties in urban areas. This has led to the development of high-rise apartment buildings and mixed-use complexes that offer a combination of residential, commercial, and retail spaces. Furthermore, there is an increasing trend towards sustainable and energy-efficient homes, as customers are becoming more conscious of the environmental impact of their living spaces. Local special circumstances in Israel's Residential Real Estate market include the unique geopolitical situation of the country. The demand for housing is also driven by factors such as immigration and the return of Israeli citizens from abroad. Additionally, the Israeli government has implemented policies to encourage home ownership, such as providing financial incentives and subsidies for first-time buyers. These factors contribute to the growth and development of the market. Underlying macroeconomic factors play a significant role in the development of Israel's Residential Real Estate market. The country's strong economic growth, low unemployment rate, and favorable interest rates have created a favorable environment for investment in the real estate sector. Additionally, the stability of the Israeli shekel and the country's robust financial system have attracted both domestic and international investors to the market. These factors have contributed to the increase in property prices and the overall growth of the market. In conclusion, Israel's Residential Real Estate market is experiencing significant development and growth driven by customer preferences for urban living, modern and well-designed homes, and proximity to amenities. The unique geopolitical situation, government policies, and underlying macroeconomic factors contribute to the growth and development of the market.

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Generally considered the third key pillar of the food, clothing, and shelter trinity popularized in India over generations, owning a home is still prioritized as a measure of financial security by a vast majority of the Indian population. The COVID-19 pandemic with its successive lockdowns and restrictions to stay within the confines of one’s home, further reinforced this vision. India’s growing urban population, rising household incomes, and decade-long low-interest rates have been propelling the demand for residential units, driving up the sales volume. Even though the residential real estate sector was severely hit in 2020, it marked a strong recovery in consecutive years, crossing pre-COVID sales figures.

Residential Real Estate - Israel

Value

Volume

Analyst Opinion

Transaction Value

Revenue

Household Type

Real Estate Type

Living Space

Methodology

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