The opportunity window is narrowing – and those who act now may reap the biggest rewards.

1. Where We Stand – and What’s Coming Next

👉 Despite a turbulent year, Israel’s real estate market is showing remarkable resilience – and signs of a powerful rebound.
Since May 2025, prices have resumed a moderate upward trend, and construction investment is picking up sharply.

2. The Driving Forces – Domestic & Global

📌 Microeconomic Momentum:

• Population Growth & Immigration: Over 500,000 returning residents, new immigrants,
  and internal movers are generating significant housing demand.
• Private Investors are Returning: In 2024, housing prices increased in
  Haifa (+11%), Central Israel (+7.7%), and the North (+9.5%) – all during wartime.

📌 Macroeconomic Fundamentals:

• War Costs Were Real – But Temporary: While the war cost Israel an estimated
  $55–67 billion, GDP growth of 3.4% in Q1 2025 shows the economy is regaining strength.
• Construction Delays Fuel Demand: A ~17% drop in housing starts during the war led to undersupply –
  but in Q1/2025, construction investment rebounded by 28%, and demand is still far ahead of supply.

3. Abraham Accords 2.0 – A New Regional Growth Engine

• Peace Brings Business: Israel–UAE trade hit $2.56 billion in 2022. In 2025,
  despite regional tensions, dialogue with Saudi Arabia is reportedly underway,
  with economic normalization on the horizon.
• Real Estate as a Strategic Asset: Regional partnerships are already paving the way for
  investment in infrastructure, residential development, and hospitality
  particularly from Gulf-based funds looking for secure, high-growth assets.

🎯 Why Now is the Moment to Invest

1. Land Prices Are Stabilizing – poised for a 6%-12% increase over the next 12 months.
2. Supply is Limited – due to construction lags, and it will take years to catch up.
3. Global Investors Are Back – foreign investors, returning Israelis, and affluent newcomers are already snapping up deals.
4. Regional Capital is Coming – Gulf investors are entering the market quietly but aggressively.

💡 Bottom line: This is the final minute before the next big leap.

The war disrupted, but did not derail, Israel’s economic trajectory.
Today’s buyer is tomorrow’s winner – and the smart money is moving now.

📌 In the next article:

We’ll explore the rental and income-generating market, dive into land investments,
and spotlight strategic opportunities across Israel.

Don’t miss the window.

History shows that Israel rebounds stronger than ever – and this time, real estate will lead the way.

🔎 Sources

• Reuters – Israel GDP grew 3.4% in Q1 2025
• Le Monde – Israeli economy during war
• Calcalist – Real estate prices remain resilient in 2024
• ImmoIsrael – Market analysis since October 2023
• Globes – Investment in construction rebounds by 28% in Q1 2025