Kuwait’s real estate market soars with $54 billion projects in 2024

• Kuwaiti real estate projects market ranked fourth in the Gulf, following Saudi Arabia, the UAE, and Oman, in terms of the value of projects under construction or planned for 2024.

• The Gulf real estate sector is set for a positive shift this year, with $1.68 trillion worth of qualitative projects planned or under construction for 2024.

• Saudi Arabia leads with 63.1% of GCC projects valued at $1.06 trillion, followed by the UAE at 24.4% or $409 billion.

According to a report by the Real Estate and Investment Services Group (CBRE), the real estate sector in Gulf countries is expected to experience growth in 2024, with Saudi Arabia and the UAE leading the way.

The report revealed that the value of real estate projects under construction and planned in Kuwait in 2024 amounts to about $54 billion, representing 3.2 percent of the total value of projects currently under construction and planned in the GCC countries.

The Kuwaiti real estate projects market ranked fourth in the Gulf, following Saudi Arabia, the Emirates, and Oman, in terms of the value of projects under construction or planned for this year.

The report, published by Forbes Middle East magazine on its website, indicated that the growth of the sector in Saudi Arabia and the Emirates is attributed to the continued launch of investment and business-based initiatives in these two countries. This, in turn, has contributed to an increase in demand for real estate, particularly luxury residential properties.

It is expected that the current year will bring a positive shift for all Gulf countries regarding the real estate sector, due to the launch of qualitative projects valued at $1.68 trillion for projects under construction and planned for 2024.

According to the CBRE Group, Saudi Arabia represents 63.1 percent of the total value of projects currently under construction and planned in the GCC countries, equivalent to 1.06 trillion. This is followed by the UAE with 24.4 percent, equivalent to 409 billion, and then the Sultanate of Oman with 87 billion, accounting for 5.2 percent.

Kuwait ranks fourth in project size, followed by Qatar at 2.9 percent, representing 48 billion dollars and the Kingdom of Bahrain at 21 billion, equivalent to 1.3 percent.

The UAE’s real estate sector continues to grow due to government initiatives that have created qualitative opportunities for developing new sites and creating new tourist and real estate attractions. This growth is evident in the development witnessed by the Emirate of Ras Al Khaimah, increasing the number of private sector developers and investors.

Kuwait to record highest inflation rate in 2024 and 2025

On the other hand, the report expected Kuwait to record the highest inflation rate in 2024 and 2025 among the Gulf Cooperation Council countries.

Regarding the hotel sector, the report said that the sector continued its growth over the past year in the majority of Gulf markets. Although there are some exceptions, most notably Kuwait and Muscat, market sentiment is broadly positive.

In its latest report on Middle East real estate forecasts for 2024, the group expected the real estate market in Gulf countries to continue its upward trajectory, predicting a 2.9 percent growth rate in the non-oil sector for the current year.

CBRE’s report anticipated continued growth in real estate in Abu Dhabi and Dubai, particularly in the luxury beachfront market, projecting superior performance due to decreased supply of beachfront sites.

The increase in initiatives in Saudi Arabia also helps expand and diversify the demand base for various properties and increase the occupancy rate of rentals and hotels. Meanwhile, the group expects Bahrain to witness an increase in the occupancy rate of low-priced properties.