Did you know?

EQUITIES

  • the real estate sector is about 18% of the total equity market capitalization of all stocks listed on TASE (Tel Aviv Stock Exchange)

  • this 18% level is the highest in Europe and #2 in the developed world after Singapore at 20%

  • the total equity market capitalization of the real estate sector on the TASE is roughly US$100 billion

  • this US$100 billion level ranks #1 largest among European countries in terms of property sector total equity market capitalization (the UK is #2 at US$70 billion)

  • the TASE real estate equity index has outperformed all other major global developed country real estate equity indices on a trailing 1, 3, 5 and 10 years basis (in ILS and USD and EUR)

  • the weight of Israel in the FTSE EPRA/NAREIT Developed EMEA benchmark is now nearly 4% compared to less than 2% only three years ago and 1% five years ago (benchmark weights are based on free float market capitalization)

  • the weight of Israel in the benchmark now ranks 7th largest, ahead of Spain and Netherlands and many others

  • an estimated US$300 billion of capital follows the FTSE EPRA/NAREIT series of benchmarks making them the most followed real estate equity benchmark group.

  • the TASE shifted its trading schedule to Monday-to-Friday to align with Europe in January 2026.

BONDS

  • the total value of real estate sector corporate bonds in Israel is around US$60 billion (nearly all of which are publicly traded on TASE as opposed to OTC listed like the vast majority of eurobonds)

  • the US$60 billion ranks Israel as #1 in Europe in terms of total property sector corporate bonds outstanding

  • this compares with the international eurobond market for corporate bonds from the real estate sector at roughly US$130 billion (including both IG and HY)

  • the real estate sector is 40% of all corporate bonds in Israel by value, by far the highest weighting in Europe (except Norway)

  • corporate bonds in Israel are issued in inflation-linked and nominal (unlinked) variety. The real estate sector in Israel, which enjoys contractual inflation-linked rental income, is a heavy user of inflation-linked bonds. There are no corporate inflation-linked bonds in Europe, despite the near universal contractual linkage in commercial leases between rent and inflation there as in Israel.

  • the inflation-linked coupon rate for borrowers is typically 150-200bps lower than nominal (unlinked) bonds.

REAL ESTATE AND ECONOMIC FUNDAMENTALS

  • with 4.6 million inhabitants the greater Tel Aviv metro area (the Gush Dan region) ranks 7th in Europe by metro population

  • the Tel Aviv metro area (Gush Dan) ranks 3rd or 4th in Europe by metro area GDP (after London and Paris) largely owing to its high value added economy

  • at 1.5% the natural rate of population growth in Israel is the only OECD country above 0%. And the crude birth rate of 20 per 1,000 is double the OECD average. Contrary to widespread believe the high rate of fertility is not confined to a single segment of society.

  • according to JLL data Israel ranks 7th largest source of investment into European real estate. Other sources suggest Israel is 3rd or 4th largest source of investment into CEE real estate.

  • with US$2 trillion of AUM the investment management industry in Israel would rank 6th in Europe in total size

  • at nearly 40 trillion cubic feet the recently discovered offshore natural gas reserves of Israel would rank 2nd in Europe after Norway, and the country is emerging as a significant exporter of energy to Europe and elsewhere.

  • the S&P sovereign rating of Israel peaked at AA- in 2018