Since the end of the intifada in 2003, investment in real estate totaled $2.92 billion. The Bank of Israel says the higher figures are due to an increase in demand by foreigners for luxury homes. The continuing stable security situation, economic revival and depreciation of the shekel against the currency basket have led to increased demand for property and a rise in construction starts.

Not only are foreigners investing in Israel, so too are Israelis investing overseas. That cross-border activity totaled $13.1 billion in Q1, of which $8.85 billion was invested in factories, companies and income-producing real estate. This includes the building of malls and shopping centers in Eastern Europe and the CIS.Since the end of the intifada, total overseas investment has totaled $45 billion, the highest rate of investment since the appointment of Professor Jacob Frenkel as Bank of Israel governor in 1991. Frenkel has liberalized foreign currency regulations, introduced a floating exchange rate and removed restrictions on capital outflow.

Since the mid-2003, $15.5 billion have been invested directly in companies and income-producing real estate and $12.7 billion have been invested in stocks and bonds on overseas bourses. Israelis also deposited $10.7 billion in overseas bank accounts.