In 2023, Israel has jumped to eighth place in the ranking of countries investing in the European real estate market and to 10th place in global real estate investment, according to a report published by international real estate investment management giant JLL, seen by Ynet.
The report highlights the robust growth of Israeli investment in real estate on the continent, which reached an astounding $1.3 billion over the past year. This is a significant jump from Israel’s 12th place in 2022 and 16th place in 2021. Israel’s investment in global real estate also grew significantly, reaching $1.7 billion. Israel ranked 16th in 2022 and 19th in 2021, further reinforcing the stability and growth of the market.
Data from JLL’s research division shows a change in the continental preferences of Israeli investors over the past decade: Germany, which was the most attractive investment center for Israeli European real estate investments in 2013, has lost its position, being replaced by the United Kingdom, which will become the largest investment destination in 2023. Incidentally, this is also reflected in the overall global situation, with the United States coming in second after the United Kingdom.
The general investment trend in Germany is towards commercial centres anchored by supermarkets and “mixed-use” buildings (residential alongside commercial, office and public buildings) with a strong and stable tenant base.
The German real estate market is highly regulated, so Israelis are not very keen to invest in that sector. In other European countries, investors prefer residential real estate, industry, logistics and the beginning of a trend towards opting for computer server farms.
In the European real estate sector, Israel ranks 8th, while the United States takes the top spot with investments of $12.23 billion, followed by the United Kingdom with $3.75 billion and France with $3.7 billion. The United States, Singapore, Canada and the United Kingdom are the leaders in global real estate investment this year.
The leading countries for global real estate investment in 2023 will be the United States ($17 billion), Singapore ($9.8 billion), Canada ($8.3 billion) and the United Kingdom ($4.86 billion).
According to Mor Ziv, head of international capital at JLL Israel, both rankings establish Israel as a significant player in the global real estate market: “These are pension funds, insurance companies, real estate companies and private investors who invest at least $5 million per deal in different sectors of the overseas real estate market.”
Ziv further adds, “The European market is much more complex than the American market, where Israelis prefer to invest, because America is perceived as one country, despite being made up of many states. Europe has many different countries with vastly different regulations and cultures. Israeli players usually need local partners to create an investment trajectory, and we facilitate approaches to local actors.”
Mor ZivPhotography: Lina Miara
Founded 240 years ago, JLL operates in 80 countries and employs around 100,000 people. The company trades on the New York Stock Exchange at a valuation of around $8 billion. The trading volume per business day reaches an astounding $1.3 billion. Since 2018, JLL has had a representative office in Israel, which currently employs 250 people under the management of Ziv Shor.
