Real Estate in Kuwait: Predictions and Opportunities for 2025
- Prokers Realty
- Dec 14, 2024
- 2 min read
Exploring Growth Drivers, Market Trends, and Investment Prospects in Kuwait's Real Estate Sector for the Year Ahead.
Kuwait's real estate market is poised for steady growth in 2025, driven by strategic government initiatives, robust economic indicators, and evolving consumer preferences.
Economic Outlook
The International Monetary Fund (IMF) projects Kuwait's real GDP to grow by 2.6% in 2024, with an optimistic forecast of 8.1% growth in 2025. This positive trajectory is expected to bolster the real estate sector, as economic expansion typically enhances investor confidence and demand for property.
Government Initiatives
The "New Kuwait 2035" development plan underscores the government's commitment to economic diversification and sustainable growth. This blueprint emphasizes infrastructure development and the creation of new residential and commercial properties, which are anticipated to stimulate the real estate market.
Oxford Business Group
Market Performance
In the first half of 2024, Kuwait's real estate market experienced a 7% growth compared to the latter half of 2023, with total real estate contracts valued at approximately 1.619 billion dinars. This growth was primarily driven by increased activity in the exhibitions and warehouses segments.
Arab Times
Sector-Specific Trends
Residential Real Estate: The market is forecasted to reach a value of US$648.10 billion by 2024, with an expected annual growth rate of 2.00% leading to US$715.60 billion by 2029. This growth is attributed to a surge in demand for luxury properties and modern, well-designed residential developments offering amenities such as swimming pools, gyms, and communal spaces.
Commercial Real Estate: Moderate growth in rental rates is anticipated over 2024 and 2025. The government's plans to diversify the economy away from hydrocarbons are expected to enhance the prospects of the commercial real estate market.
Challenges
Despite the positive outlook, the market faces challenges, including potential declines in oil prices and regional geopolitical tensions, which could impact investor sentiment and market stability.
Conclusion
Kuwait's real estate sector is on a path of steady growth, supported by favorable economic conditions, proactive government policies, and shifting consumer preferences towards luxury and sustainable properties. While challenges persist, the overall outlook for 2025 remains positive, with anticipated expansions across both residential and commercial segments.
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