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Background and Purpose of the Report
The State of Israel is one of the most densely populated countries in the OECD. Its population density increased from 278 inhabitants per square kilometer in 2000 to 447 inhabitants per square kilometer in 2026, and is expected to reach approximately 581 inhabitants per square kilometer in 2050 and over 922 inhabitants per square kilometer in 2065.
Purpose of the report: 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.
The Land Supply Crisis in Israel
Official data from the Israel Land Authority (December 2021)
Details of the land distribution
*There is some overlap between these areas.
**Open and agricultural areas, including contiguous areas of at least 50 dunams in size.
⚠️ Critical insight: Many believe that the ILA manages all of the country's land. Approximately 93% of the country's land is indeed owned by the State of Israel, the JNF, and the Development Authority — the areas managed by the ILA. However, in practice, after examining the division and planning designations, the ILA has only 1.59 million dunams left to plan (about 7% of the country's land).
The Private Land Opportunity
Why private land has 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
Advantages of private land
- Not subject to ILA tenders
- Potential for faster planning approval
- Direct negotiation with owners
- Rarity premium (only 7% of total land)
Investment implications
Of the 1.85 million dunams available for planning, approximately 260,000 dunams are owned privately or by local authorities — not under ILA control. These lands offer development potential independent of state tenders, and with growing demand from a population that increases by 2% per year, this is a rare asset with structural appreciation potential.
