Israel has rapidly established itself as a prominent force in global commercial real estate, making significant strides in Europe and the United States. According to the 2024 Global Investment Report by Jones Lang LaSalle (JLL), Israel now ranks 7th in Europe and 10th in the US for real estate investments, underscoring its growing influence on international property markets.
The latest data reveals a remarkable 78% increase in Israeli investment within the European property market. In 2024, Israeli investments in Europe totalled around $2.33 billion, up from $1.3 billion the previous year. Meanwhile, Israeli capital flow into the United States reached $578 million, highlighting a continued strategic presence in the American market.
Israel’s performance in Europe has shown steady improvement in recent years. The country has climbed steadily in the rankings, from 16th place in 2021 to 12th in 2022, 8th in 2023, and 7th in 2024. This trajectory reflects Israel's growing importance as a key player in the European real estate scene.
Israeli investors are diversifying their portfolios across various sectors, including logistics, hospitality, retail, and housing, each seeing significant investment. In Europe, the breakdown of investments is $961 million in logistics, $851 million in hospitality, $728 million in retail, $597 million in office spaces, and $588 million in multi-housing. Additionally, Israeli capital flows into emerging sectors such as data centres, healthcare, and infrastructure, highlighting a shift towards future-focused, technology-driven assets.
Israeli investments remain robust in the United States, although the growth in investment volume is more gradual compared to Europe. Israel holds its position as the 10th largest foreign investor in US real estate, with a focus on industrial and logistics properties. In the US, Israeli investments are broken down into $400 million for industry and logistics, $169 million for office spaces, and $10 million for retail.
While the US market sees a more concentrated approach, focusing on sectors with steady demand, particularly in response to the growth of e-commerce and modernisation of supply chains, Israeli activity in Europe has been more diversified. However, it is worth noting that the true scale of Israeli investment in the US could be higher than reported, as many transactions are carried out through American entities established for specific deals, which may lead to some investments being attributed to US sources.
The increasing involvement of Israeli investors in global markets reflects a maturation in their investment strategy. Israeli institutions, including pension funds, insurance companies, and private investors, are increasingly seeking quality exposure to logistics, student housing, senior living, and data infrastructure sectors. This trend suggests that Israeli investors are not merely pursuing returns but are also focused on long-term risk management and strategic growth.
