Background & Purpose
Israel is one of the most densely populated countries in the OECD. Its population density increased from 278 people per km² in 2000 to 447 people per km² in 2026, and is projected to reach approximately 581 people per km² by 2050 and over 922 people per km² by 2065.
Report Purpose: To provide a comprehensive overview of population and density trends in Israel compared to other OECD countries, and to analyze the structural land supply constraints that create unique investment opportunities in private land holdings.
Israel's Land Supply Crisis
Official Data from Israel Land Authority (December 2021)
Land Allocation Breakdown
*There is some overlap between these areas.
**Open areas, agricultural land, and areas containing contiguous plots of at least 50 dunam.
⚠️ Critical Insight: Many believe the ILA manages all state land. While 93% of Israel's land is owned by the State, JNF, and Development Authority – the land managed by ILA – in practice, after examining allocation and zoning, ILA has only 1.59 million dunam remaining for planning (~7% of state land).
The Private Land Opportunity
Why Private Land Holds Unique Value
Government Land Constraints
- Subject to ILA tender processes
- Long bureaucratic approval cycles
- Political considerations in allocation
- Limited release of new land for development
Private Land Advantages
- Not subject to ILA tenders
- Faster planning approval potential
- Direct negotiation with owners
- Scarcity premium (only 7% of total land)
Investment Implications
Of the 1.85 million dunam available for planning, approximately 260,000 dunam are privately or municipally owned – not under ILA control. These lands offer development potential without dependence on state tenders, and with growing demand from a population increasing at 2% annually – this represents a rare asset with structural appreciation potential.