Kuwait Real Estate Report - H1 2024 Review and H2 2024 Outlook

Executive Summary

Kuwait economy is expected to contract for the second consecutive year in 2024 weighed down by oil production cuts, challenging macroeconomic conditions and geopolitical uncertainty in the Middle East. Kuwait’s Real estate sector remained stable in Q4 2024, as evidenced by steady prices and rents in 2024 so far, except for a mild moderation in the Private housing (residential) prices. However, the value of real estate sales witnessed a dip as the pent-up demand post-pandemic began to normalize. Cap rates for the apartments (Istithmari segment) marginally eased owing to rebound in prices. Rental rates across most Investment and Commercial areas increased, which indicate further stability in Kuwait’s real estate market. Interest rate cuts in H2 2024, pickup in projects activity, accelerated investments, and the recovery oil demand could improve the outlook for the real estate sector in the next twelve months.