"We see the biggest opportunities in residential construction"

In the panel on innovation and real estate that took place at the Calcalist and Bank Leumi conference in Miami, there was more talk about technology than real estate—and not by chance. All the speakers agreed that just as the pandemic reshaped the global real estate landscape, the breakthrough of artificial intelligence (AI) into our lives is set to bring about another major transformation.

"We want to explore trends in the real estate markets in Israel and the United States, to understand what’s shared and what differs," said Anat Katz, Israel’s Economic Minister at North America, who moderated the panel. Participants included Shlomo Khoudari, Managing Partner of Elion; Zvi Gordon, CEO of Gazit Horizons; Melissa Rose, Senior Managing Director at JLL; Russell Galbut, Managing Director at Crescent Heights; and Liat Shuv, Head of Corporate Banking at Leumi.

Liat, what is the state of the real estate market in Israel? What are the trends, and how has the war affected the sector?

“Despite the war, infrastructure and residential real estate projects are ongoing. Israel’s population is growing, so demand consistently outpaces supply, which is why construction hasn’t stopped, even during the war,” explained Liat Shuv. “Real estate is one of Israel’s growth engines. Even in the south, construction continues, although the situation in the north is different because the conflict there is ongoing. However, we anticipate recovery in the north as well.”

Shuv also noted an uptick in property purchases by diaspora Jews in Tel Aviv, Jerusalem, and even the south. “Not all of them plan to live here, but they want to own property ‘just in case.’ Israel’s population grows by 2% annually—four times the OECD average—creating a continuous need for infrastructure expansion. Leumi’s Business Division finances projects in Israel and the U.S., often in collaboration with foreign banks.”

Melissa, as a partner at JLL, what trends do you see in capital movement?

“Our company invests in commercial real estate and completed $137 billion in transactions last year across 80 countries, including Israel,” said Melissa Rose. “There’s significant activity in residential real estate, multi-family units, and industrial properties. Globally, we see the biggest opportunities in residential construction. This applies to Israel and beyond, as construction activity has dropped by 75% this year, while demand for housing remains immense.”

Russell, how has real estate evolved in the post-pandemic era?

“South Florida has changed dramatically due to the pandemic,” said Russell Galbut of Crescent Heights, which specializes in residential towers. “We had a great agent, Bill de Blasio (former New York City mayor), who sent many people here,” he joked. “Remote work has redefined Florida’s real estate market. Today, homes are not just residences—they’re also offices. Technology, like sound systems and high-speed internet, is now a fundamental part of housing. It’s not just about architecture or design anymore; connectivity is key.”

Galbut added that many buildings now incorporate retail spaces to accommodate new lifestyle needs. “These trends are happening across the U.S., not just in Florida.”

Zvi, how have changing work habits impacted office real estate?

“People often forget that real estate is a derivative of economic growth,” said Zvi Gordon, CEO of Gazit Horizons. “Miami’s strong tech and financial sectors have been critical to its real estate market. Florida has been growing faster than the national average for 30 years, attracting tens of thousands of new residents annually. That creates demand for thousands of housing units each year.”

Gordon emphasized the importance of independent decision-making in real estate. “You can’t follow the herd—you’ll end up buying at the peak and selling at the low. While the pandemic changed many things, human nature remains constant. People crave social connections, which is why we continue to invest in residential real estate.”

Shlomo, what’s the state of logistics real estate?

“We closely monitor the market through in-depth research,” said Shlomo Khoudari of Elion. “South Florida plays a significant role in logistics real estate transactions because of its dense population and positive immigration trends. Its geography—ocean on one side and marshes on the other—makes commerce critical for growth.”

How does high-tech intersect with real estate?

Melissa Rose said, “Many entrepreneurs are adopting technology. At JLL, we’ve made significant investments in tech, but there’s still so much untapped potential. The opportunities are immense.”

Russell Galbut added, “We’re incorporating technology into every aspect of our buildings. For example, tenants at our properties use an app to do everything from booking a tennis court to scheduling a barbecue. Hotels like CitizenM, which offer small rooms but rely heavily on technology, are another example of how tech can drive occupancy.”

“Real estate must innovate or risk irrelevance,” said Zvi Gordon. “For instance, if properties can generate electricity, it creates entirely new business models. AI is also set to revolutionize areas like contract management and trend analysis. This isn’t just a technological shift—it’s a paradigm shift.”

In conclusion, what will drive real estate growth in the coming years?

Melissa Rose: “Demand for residential real estate, logistics, and data centers supporting emerging AI technologies.”

Shlomo Khoudari: “AI will allow us to better understand and manage our buildings.”

Liat Shuv: “Israeli entrepreneurs will continue to develop solutions adopted by global companies.”

Russell Galbut: “Israel consistently produces groundbreaking innovations, driven by a deeply ingrained cultural drive to improve the world. This legacy is a testament to generations of ingenuity.”

Watch the full exchange in the video above.