Residential Real Estate - Kuwait

Kuwait

In Kuwait, the Residential Real Estate market market is forecasted to reach a staggering value of US$0.65tn by 2024.
This projection signifies the immense growth potential within this market segment.
Furthermore, it is anticipated that there will be a steady annual growth rate (CAGR 2024-2029) of 2.07%, leading to a substantial market volume of US$0.72tn by 2029.
When considering the global landscape, it is worth noting that China is expected to generate the highest value in the Real Estate sector.
In 2024, the Real Estate market China is projected to reach a remarkable figure of US$112.9tn.
Kuwait's residential real estate market is experiencing a surge in demand for luxury properties due to its affluent population and high standard of living.

Key regions: Europe, Brazil, France, Asia, United States

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Analyst Opinion

The Residential Real Estate market in Kuwait has experienced significant growth and development in recent years. Customer preferences in the Kuwaiti real estate market have been influenced by a number of factors. Firstly, there is a strong demand for luxury properties, particularly in prime locations such as Kuwait City. Wealthy individuals and investors are attracted to the prestige and exclusivity associated with these high-end properties. Additionally, there is a growing interest in modern and well-designed residential developments that offer a range of amenities and facilities, such as swimming pools, gyms, and communal spaces. Kuwaiti buyers also value privacy and security, which has led to an increased demand for gated communities and properties with advanced security systems. One of the key trends in the Kuwaiti real estate market is the development of mixed-use projects. These projects combine residential, commercial, and retail spaces in a single development, creating a vibrant and integrated community. This trend is driven by the desire for convenience and accessibility, as residents can live, work, and shop within the same development. Mixed-use projects also offer a range of amenities and services, such as restaurants, cafes, and supermarkets, enhancing the overall quality of life for residents. Another trend in the Kuwaiti real estate market is the increasing focus on sustainability and energy efficiency. With growing concerns about climate change and environmental impact, developers are incorporating green building practices and technologies into their projects. This includes the use of renewable energy sources, energy-efficient appliances, and sustainable materials. Kuwaiti buyers are increasingly aware of the importance of sustainability and are willing to pay a premium for properties that are environmentally friendly. Local special circumstances in Kuwait also play a role in shaping the residential real estate market. The government has implemented various initiatives and policies to encourage investment in the real estate sector, such as offering tax incentives and streamlining the process for obtaining permits and approvals. Additionally, the Kuwaiti government has invested heavily in infrastructure development, including the construction of new roads, bridges, and public transportation systems. These infrastructure projects have improved connectivity and accessibility, making certain areas more attractive for residential development. Underlying macroeconomic factors have also contributed to the growth of the residential real estate market in Kuwait. The country has a strong economy, driven by its oil and gas industry, which has created a wealthy population with high purchasing power. Low interest rates and favorable financing options have also made it easier for individuals to invest in real estate. Furthermore, Kuwait has a young and growing population, which has increased the demand for housing. In conclusion, the Residential Real Estate market in Kuwait has experienced significant growth and development due to customer preferences for luxury properties, mixed-use projects, and sustainable developments. Local special circumstances, such as government initiatives and infrastructure development, have also played a role in shaping the market. Underlying macroeconomic factors, including a strong economy and a young population, have further supported the growth of the market.

Methodology

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. 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.