Construction works completed in Israel reached 180.5 billion NIS. The sector contributed 5.8 percent of GDP while employing 412,000 workers. Figures on residential starts, material costs, and infrastructure spending show how these elements interact.
Key Takeaways
- In 2022, the total value of construction works completed in Israel reached approximately 180.5 billion NIS, marking a 7.2% increase from 2021
- Total employment in Israel's construction sector was 412,000 in 2022, with 28% foreign workers
- In 2022, non-residential construction output in Israel was 68 billion NIS, with office buildings at 25%
- Government investment in construction infrastructure: 35 billion NIS allocated in 2023 budget for Israel
- In 2021, residential construction accounted for 62% of total construction output in Israel, valued at 112 billion NIS
Israeli construction is expanding steadily, with key output and employment indicators showing resilient growth.
Related reading
01 · Category
Economic Indicators19 stats
01
In 2022, the total value of construction works completed in Israel reached approximately 180.5 billion NIS, marking a 7.2% increase from 2021
02
Israel's construction industry contributed 5.8% to the national GDP in 2022, up from 5.4% in 2021, driven by residential and infrastructure projects
03
The construction output index in Israel stood at 112.3 points in December 2022 (base 2010=100), reflecting a 4.1% year-on-year growth
04
Average annual growth rate of Israel's construction sector was 6.3% from 2018 to 2022, supported by housing demand
05
In Q4 2022, new construction orders in Israel totaled 25.6 billion NIS, a 9.8% rise compared to Q4 2021
06
Construction investment as a percentage of Israel's GDP was 6.1% in 2022, highest since 2019
07
The value of building permits approved in Israel in 2022 was 142.7 billion NIS for residential units
08
Israel's construction price index rose by 8.5% in 2022, due to material cost inflation
09
Total construction employment in Israel averaged 384,000 workers in 2022
10
Forecasted CAGR for Israel's construction market is 4.2% from 2023 to 2027, reaching USD 45 billion by 2027
11
In 2022, construction GDP contribution detailed as residential 3.6%, non-residential 1.7%, civil engineering 0.5% in Israel
12
Construction sector inflation-adjusted growth: 5.1% in 2022 for Israel
13
Total value-added in construction: 172 billion NIS at constant prices in Israel 2022
14
Export of construction services from Israel: 2.8 billion USD in 2022
15
Import of construction materials: 35 billion NIS in 2022 for Israel, mainly steel and cement
16
Regional construction output: Center district 42% of national total in Israel 2022
17
Number of active construction firms: 28,500 in Israel 2022
18
Small firms (<50 workers) represent 92% of construction companies in Israel 2022
19
Bankruptcy rate in construction: 1.2% of firms in Israel 2022
Interpretation
Economic Indicators Interpretation
In 2022, Israel’s economic indicators for construction strengthened noticeably as the sector’s GDP contribution rose to 5.8% from 5.4% in 2021 and construction investment reached 6.1% of GDP, the highest level since 2019.
02 · Category
Labor And Employment23 stats
01
Total employment in Israel's construction sector was 412,000 in 2022, with 28% foreign workers
02
Average monthly wage in construction industry in Israel was 12,800 NIS in 2022
03
Number of construction workers trained annually in Israel: 15,000 via vocational programs in 2022
04
Labor productivity in construction grew by 3.2% in Israel in 2022
05
Female participation in construction workforce in Israel: 8.5% in 2022, mainly in admin roles
06
Shortage of skilled construction workers in Israel estimated at 25,000 in 2022
07
Overtime hours in construction averaged 12 hours per week per worker in Israel 2022
08
Unionized workers in construction sector: 35% of total workforce in Israel 2022
09
Injury rate in construction industry: 4.2 per 100 workers in Israel 2022
10
Foreign worker visas issued for construction: 72,000 in Israel 2022
11
Apprenticeship programs in construction completed: 4,200 in Israel 2022
12
Unemployment rate in construction: 3.1% in Israel Q4 2022
13
Age distribution: 45% of construction workers under 40 in Israel 2022
14
Construction workers from Ukraine: 8,500 employed post-2022 invasion in Israel
15
Safety training sessions: 120,000 workers certified in Israel 2022
16
Wage growth in construction: 7.8% nominal increase in Israel 2022
17
Part-time construction employment: 15% of workforce in Israel 2022
18
Digital skills training for construction managers: 2,500 completed in Israel 2022
19
Labor mobility: 22% of workers changed jobs within construction Israel 2022
20
Pension coverage in construction: 88% of workers enrolled in Israel 2022
21
Remote monitoring tech adoption: 40% of sites using drones in Israel 2022
22
Youth entry into construction: 5,200 under 25 joined workforce Israel 2022
23
Gender diversity initiatives: 1,200 women trained for on-site roles Israel 2022
Interpretation
Labor And Employment Interpretation
In Israel’s labor and employment landscape, construction employed 412,000 workers in 2022 with 28% foreign labor, while wages averaged 12,800 NIS and productivity rose 3.2%, yet a shortage of about 25,000 skilled workers and low female participation at 8.5% show that demand for talent still outpaces supply.
03 · Category
Non Residential Sector20 stats
01
In 2022, non-residential construction output in Israel was 68 billion NIS, with office buildings at 25%
02
Infrastructure construction projects in Israel valued at 45 billion NIS were ongoing in 2022
03
Number of commercial building permits in Israel in 2022 was 4,200, covering 1.2 million sqm
04
Industrial construction completions in Israel in 2022 totaled 850,000 sqm, up 15% YoY
05
Public non-residential buildings started in Israel in 2022: 1,100 projects worth 22 billion NIS
06
Hotel construction in Israel saw 120,000 new rooms permitted in 2022
07
Retail space completions in Israel in 2022: 450,000 sqm, mainly in Jerusalem and Haifa
08
Educational facilities construction budget in Israel for 2022 was 9.5 billion NIS
09
Healthcare construction projects in Israel in 2022 added 150,000 sqm
10
Road and highway construction expenditure in Israel reached 18 billion NIS in 2022
11
Office space completions: 320,000 sqm in Israel 2022, 60% in Gush Dan
12
Data center construction: 150,000 sqm added in Israel 2022 for tech firms
13
Logistics warehouses built: 900,000 sqm in Israel 2022
14
Hospital expansions: 120,000 sqm in public health facilities Israel 2022
15
School buildings completed: 450 new structures covering 800,000 sqm in Israel 2022
16
Rail infrastructure investment: 22 billion NIS with 50 km new tracks in Israel 2022
17
Port expansion projects: Haifa port added 200,000 sqm facilities Israel 2022
18
Renewable energy plants construction: 1.2 GW capacity added via solar farms Israel 2022
19
Sports facilities built: 25 arenas with 150,000 seats total in Israel 2022
20
Water desalination plants expansion: 200 million cubic meters capacity Israel 2022
Interpretation
Non Residential Sector Interpretation
In Israel’s non residential construction sector, the momentum is clear in 2022 as infrastructure projects worth 45 billion NIS and 1,100 public non residential building starts totaling 22 billion NIS point to sustained investment beyond offices, supported by strong commercial permits at 4,200 covering 1.2 million sqm.
More related reading
04 · Category
Policy And Regulation20 stats
01
Government investment in construction infrastructure: 35 billion NIS allocated in 2023 budget for Israel
02
Housing price control measures led to 10% increase in supply in regulated areas in Israel 2022
03
Tax incentives for green construction: 20% rebate on materials, utilized by 1,200 projects in Israel 2022
04
Building code updates in 2022 mandated seismic standards for 80% new projects in Israel
05
Public-private partnerships in construction: 15 projects worth 50 billion NIS active in Israel 2022
06
Land allocation for housing: 12,000 dunams released by government in Israel 2022
07
VAT reduction on construction materials from 18% to 12% for affordable housing in Israel 2022
08
Foreign investment in Israeli construction: USD 4.2 billion inflows in 2022
09
Regulatory approvals time reduced to 18 months average for residential projects in Israel 2022
10
Subsidies for infrastructure: 12 billion NIS for rail projects under national plan in Israel 2022
11
National housing plan 2023-2025: Targets 300,000 units with 100 billion NIS budget Israel
12
Green building incentives: Tax credits up to 25% for LEED certified projects Israel 2022
13
Fast-track permitting for infrastructure: Reduced to 12 months for priority projects Israel 2022
14
Foreign worker quota increased to 90,000 for construction in Israel 2022 policy
15
Affordable housing fund: 15 billion NIS allocated for 50,000 units Israel 2022
16
BIM mandatory for public projects over 50 million NIS in Israel from 2022
17
Urban renewal tenders: 250 neighborhoods approved for 40,000 units Israel 2022
18
Export promotion for construction tech firms: 500 million NIS grants Israel 2022
19
Seismic retrofitting subsidies: 2 billion NIS for 10,000 buildings Israel 2022
20
R&D tax credits for construction innovation: 12% rate applied to 1.5 billion NIS investments Israel 2022
Interpretation
Policy And Regulation Interpretation
Israel’s policy and regulation are clearly driving construction momentum, with 35 billion NIS in infrastructure funding in 2023 and regulatory measures pushing seismic standards into 80% of new projects while green construction incentives fueled 1,200 projects in 2022.
05 · Category
Residential Sector19 stats
01
In 2021, residential construction accounted for 62% of total construction output in Israel, valued at 112 billion NIS
02
Number of housing units started in Israel in 2022 was 72,500, a 12% increase from 2021
03
Average size of new residential apartments completed in Israel in 2022 was 95 square meters
04
In 2022, 58,200 housing units were completed in Israel, with 45% in the periphery regions
05
Residential building permits issued in Israel in 2022 totaled 78,900 units
06
The value of residential construction works in progress in Israel was 250 billion NIS at end-2022
07
In Tel Aviv district, 15,200 residential units were started in 2022, representing 21% of national total
08
Multi-family residential buildings comprised 68% of new residential completions in Israel in 2022
09
Average construction cost per square meter for residential buildings in Israel was 12,500 NIS in 2022
10
Government-subsidized housing units completed in Israel in 2022 numbered 8,400
11
Jerusalem residential starts: 9,800 units in 2022, 14% national share in Israel
12
Single-family home completions: 12% of total residential in Israel 2022, averaging 150 sqm
13
Rental housing units built: 6,500 under government program in Israel 2022
14
High-rise residential (>10 floors) permits: 2,400 units in Tel Aviv 2022 Israel
15
Energy-efficient residential certifications: 45% of new builds in Israel 2022
16
Peripheral regions residential investment: 35 billion NIS in Israel 2022
17
Cooperative housing starts: 4,200 units in Israel 2022
18
Luxury residential sales area: 250,000 sqm sold in Israel 2022
19
Rehabilitation of old residential stock: 18,000 units upgraded in Israel 2022
Interpretation
Residential Sector Interpretation
In Israel’s Residential Sector, housing activity is clearly accelerating with starts rising to 72,500 units in 2022, supported by 78,900 permits and a 250 billion NIS pipeline of works in progress at end-2022.
report visual · Comparison
Israel Construction Output Rising (2021→2022)
Multiple indicators show construction activity and demand expanding in 2022 versus 2021.
In 2022, the total value of construction works completed in Israel reached approximately 180.5 billion NIS, marking a 7.7.2%
Israel's construction industry contributed 5.8% to the national GDP in 2022, up from 5.4% in 2021, driven by residential
5.8%
The construction output index in Israel stood at 112.3 points in December 2022 (base 2010=100), reflecting a 4.1% year-o
4.1%
Reference
Cite This Report
This report is designed to be cited. We maintain stable URLs and versioned verification dates. Copy the format appropriate for your publication below.
APA
Rachel Svensson. (2026, February 13). Israel Construction Industry Statistics. Gitnux. https://gitnux.org/israel-construction-industry-statistics
MLA
Rachel Svensson. "Israel Construction Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/israel-construction-industry-statistics.
Chicago
Rachel Svensson. 2026. "Israel Construction Industry Statistics." Gitnux. https://gitnux.org/israel-construction-industry-statistics.
Sources & references
37 datasets cited across this report · attribution is report-level
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