Executive Summary
Kuwaits Real Estate sector has recovered from the lows caused by the pandemic. Overall Real Estate transactions have declined by 2.8% Jan-Sep 2022 weighed by decline in transactions in private housing segment even as commercial and Istithmari segments showed positive growth. Average Land prices have increased across most localities in Residential, Commercial and industrial units in Q2 2022. Average Rental rates have seen an uptick for residential apartments in Q2 2022 for most of the localities. However, the Average Rental Value for retail segment in commercial sector has seen a decrease. Capitalization rates have remained stable in Q2 2022 as compared to Q3 2021. Build operate transfer (BOT) projects such as the Sabah Al-Ahmed project (S3) and Entertainment City project provide opportunities for real estate investment. While economic growth supported by stable oil price levels, government spending and recovering private sector activity are positive indicators for the Real estate sector, rise in interest rates and concerns of global recession pose threats.
