Commercial Real Estate - Kuwait

Kuwait

The Commercial Real Estate market market in Kuwait is projected to reach a value of US$170.10bn by 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of -0.27%, leading to a market volume of US$167.80bn by 2029.
In comparison to other countries, the United States is predicted to generate the highest value in the Real Estate sector, with an estimated worth of US$25,280.0bn by 2024.
Kuwait's commercial real estate market is experiencing a surge in demand for office spaces, driven by the country's growing business sector.

Key regions: Europe, France, Japan, Brazil, Asia

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Analyst Opinion

The Commercial Real Estate market in Kuwait is experiencing steady growth and development, driven by various factors and trends in the market.

Customer preferences: Customers in the Kuwait Commercial Real Estate market are increasingly seeking modern and well-equipped office spaces. They prefer properties that offer state-of-the-art facilities, advanced technology infrastructure, and sustainable design features. Additionally, there is a growing demand for mixed-use developments that combine office spaces with retail, dining, and entertainment options, providing a convenient and vibrant environment for businesses.

Trends in the market: One of the prominent trends in the Kuwait Commercial Real Estate market is the increasing focus on sustainability. Developers are incorporating eco-friendly features such as energy-efficient systems, green building materials, and renewable energy sources into their projects. This trend is driven by the global shift towards sustainability and the growing awareness of environmental issues among businesses and consumers. Another trend in the market is the rise of flexible workspaces. With the emergence of startups, freelancers, and remote working, there is a growing demand for flexible office spaces that can be easily adapted to changing needs. Co-working spaces and serviced offices are becoming popular options, offering flexible lease terms, shared amenities, and a collaborative work environment.

Local special circumstances: Kuwait's strategic location in the Middle East, along with its stable political and economic environment, makes it an attractive destination for businesses and investors. The government's efforts to diversify the economy and reduce dependence on oil revenues have also contributed to the growth of the Commercial Real Estate market. Initiatives such as the Kuwait Vision 2035 and the New Kuwait development plan have created opportunities for infrastructure development and investment in various sectors, including real estate.

Underlying macroeconomic factors: The Commercial Real Estate market in Kuwait is influenced by several macroeconomic factors. The country's strong GDP growth, favorable business environment, and supportive government policies have attracted local and international investors. Additionally, the low interest rates and ample liquidity in the banking sector have facilitated real estate financing and investment. Furthermore, Kuwait's growing population and urbanization have increased the demand for commercial properties. The expansion of industries such as finance, technology, and healthcare has also created a need for modern office spaces and commercial facilities. In conclusion, the Commercial Real Estate market in Kuwait is witnessing growth and development due to customer preferences for modern and sustainable properties, the rise of flexible workspaces, the country's favorable business environment, and the government's initiatives to diversify the economy. These trends, coupled with underlying macroeconomic factors, are driving the demand for commercial properties and attracting investors to the market.

Methodology

Data coverage:

Figures are based on value of commercial real estate.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the market, for example, exponential trend smoothing.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.