Shopping Still Strong in Israel

Givatay'im mall at a quiet weekday morning. Shopping at a street level has actually increased recently.

Israel somehow averted the global downturn of 2008. This makes for over two decades of steady growth (see Bank of Israel statistic). Some attribute this to the cautious Israeli bank lending policies. The average Israeli who wants to qualify for a mortgage needs to show ability to pay off a loan more convincingly than in other countries. Certainly more than in the US (see the recent movie "The Big Short") even after the sub-prime Wall Street fiasco. Some attribute the strong economy to fast move into new technology start-up sectors and security (i.e. military, internet cyber) sectors. Either way, the Israeli economy is growing steadily. This puts pressure on consumer sectors. The building industry has been suffering for years from slow growth and new home prices continue to see inflation year after year (2015 home prices in Tel Aviv increased by 8%). The state (in making land available), builders (due to labor shortage) and even banks are not "building" enough new housing. Demand is simply growing much faster than supply.
Retail and restaurant sectors are also seeing pressure both from new competitors and from higher consumption. For the first time Israeli retailers are seeing demand for luxury items outstrip supply. From restaurant to luxury cars and clothing, Israel is seeing growth like never before. At the street level this shows up in how people dress, entertain and even drive and live.Israelis are chasing living standard seen in the wealthier countries of Europe. Shopping for clothes in England, France or Germany is no longer considered a luxury. Vacation trips around the world are becoming as common as vacations inside Israel. The craze to build malls took Israel by surprise the last decade. Now there is a push for more upscale shops.