The year 2023 saw Israel catapulted to 8th place in the ranking of countries investing in the European real estate market and to 10th place in real estate investments worldwide - according to a report issued by the international real estate and investment management mogul JLL, seen by Ynet
The report underscores the robust growth of Israeli investments in continental real estate, which reached a staggering $1.3 billion in the past year. This is a significant leap from Israel's 12th position in 2022 and 16th position in 2021. The volume of Israeli investment in global real estate also witnessed a substantial increase, reaching $1.7 billion. In 2022, Israel was ranked 16th, and in 2021, 19th, further reinforcing the stability and growth of the market.
JLL's research division data demonstrates changes in Israeli investors' continental preferences during the past decade. Germany, the most attractive investment epicenter for Israeli investments in European real estate back in 2013, lost its status in favor of the UK, which became the leading investment destination in 2023. Incidentally, this is also reflected in the global picture, where the U.S. takes 2nd place after the UK.
The general investment trend in Germany is in commercial centers anchored by supermarkets and "mixed-use" buildings - residential alongside commerce, offices and public buildings - with a solid and stable tenant base.
Due to the heavy regulation in the German real estate market, Israelis are less keen to invest in that sector. In other European countries, investors favor residential real estate, industry, and logistics, and the beginning of a trend opting for computer server farms.
In the European real estate arena, where Israel ranks 8th, the U.S. ranks 1st, with investments of $12.23 billion, followed by the UK, with $3.75 billion, and France, with $3.7 billion. The US, Singapore, Canada, and the UK are this year's leaders in global RE investment.
The leading countries in global real estate investment in 2023 are the US, with $17 billion; Singapore, with $9.8 billion; Canada, with $8.3 billion; and the UK, with $4.86 billion.
According to Mor Ziv, Head of International Capital Coverage at JLL. Israel, the increase in both rankings establishes Israel's position as a significant player in the global real estate market: "These are pension funds, insurance companies, real estate companies and private investors, who invest in various sectors of the real estate market abroad, to the extent of at least $5 million per transaction.”
Ziv continues by saying: “The European market is much more complex than the American market where Israelis love to invest because, although the United States comprises many states, it is perceived as one country. In Europe, there are various countries with significant regulatory and cultural differences. Israeli players usually need a local partner to generate an investment track, and we facilitate that approach to local parties.”
Mor ZivPhoto: Lina MiaraFounded 240 years ago, JLL operates in 80 countries and employs about 100,000 workers. The Company is traded on the New York Stock Exchange at a valuation of about $8 billion. At any given business day it’s transaction scope reaches a whopping $1.3 billion. Since 2018, JLL has been holding a representative office in Israel, currently employing 250 people under the management of Ziv Shor.