Yadin Antebi, CEO of Bank Hapoalim, identified infrastructure, data centers, and hospitality as key investment opportunities during a recent EY real estate conference in Israel. Antebi stated that these sectors would advance regardless of governmental changes and despite current economic conditions.

The Israeli economy entered the war on October 7, 2023, from a position of strength, characterized by low unemployment and inflation, according to Antebi. He stated that these conditions provided the economy with the necessary stability to operate during wartime, allowing businesses to recover and return to near-regular functioning within two to three months.

Antebi also noted that the macroeconomic picture in Israel currently appears less favorable compared to the beginning of Operation Roaring Lion. He remarked on expectations for a different economic and geopolitical equilibrium that have not materialized. Bank Hapoalim's financial reports indicate that specific loan-loss provisions have remained consistently low over several quarters.

Infrastructure projects, including public transportation, trains, and bridges, will continue to advance in the coming years, Antebi said, regardless of which government is in power. He also projected the construction of dozens of data centers in Israel, an area the bank is monitoring. Additionally, Antebi mentioned that entrepreneurs are actively approaching Bank Hapoalim to establish new hotels in Israel, indicating a forward-looking perspective within the industry.

Clara Zwergel, Head of the Real Estate Sector in Bank Hapoalim’s Corporate Division, observed that entrepreneurs are adapting despite a market slowdown by developing new project types and financing structures. Zwergel also called for authorities to facilitate the conversion of old office buildings into residential properties, stating that new buildings meet environmental standards, but older office buildings are difficult to convert to meet green standards.

Why It Matters

These statements highlight the perspectives of a major Israeli banking executive on the country's economic resilience during a period of conflict and identify specific sectors for future investment. The focus on infrastructure, data centers, and hospitality points to areas expected to see continued growth and development. The remarks also address the economic conditions and challenges following recent events, including the government's future budget planning regarding defense spending.