Israel’s European real estate investments skyrocket: What’s behind the surge?
A new JLL report reveals Israeli investments hit $2.33 billion in Europe this year, with increasing focus on the US logistics sector.
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Israel has ascended to seventh place in the United Kingdom’s JLL (Jones Lang LaSalle Incorporated) 2024 annual report on European real estate investment, moving up from eighth last year, while also climbing from twelfth to tenth among investors in the U.S. market.
The report highlights a remarkable 78% increase in Israeli real estate investments in Europe, growing from $1.3 billion in 2023 to $2.33 billion by the end of 2024. This surge is attributed to strong investments from Israeli publicly traded companies, pension funds, insurance firms, and private investors, with a particular focus on commercial real estate assets.
In JLL’s rankings, the United States led the way in European commercial real estate investments, followed by France, the United Kingdom, Sweden, Spain, and Germany.
Israel’s investment outpaced nations such as Singapore, Canada, South Africa, the Netherlands, Switzerland, Norway, Italy, and Belgium.
Israeli capital also made significant inroads in the U.S. market, totaling about $578 million. However, while investments in Europe were diverse, U.S. investments were largely concentrated in the industrial and logistics sector, which garnered approximately $400 million due to the growing demand for e-commerce, improved supply chain logistics, and advanced distribution infrastructure. An additional $169 million went into office spaces, while only $10 million was invested in retail properties.