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Markaz releases real estate sector reports for Kuwait, Saudi Arabia, and UAE

The Kuwait Financial Center “Markaz” has issued a series of reports on the real estate sectors of Kuwait, Saudi Arabia, and the United Arab Emirates, aiming to empower investors with comprehensive and up-to-date data on market trends and investment opportunities.

Prepared by Marmore MENA Intelligence, the research arm of the Center, these reports delve into the performance of the real estate sector in the second half of 2023 and provide forecasts for the first half of 2024. They are based on fundamental macroeconomic indicators such as oil and non-oil GDP growth, financial position, investments, inflation, interest rates, population growth, and job creation, reports Al-Jarida daily.

Expectations for the first half of 2024 indicate that the real estate sector in the GCC region may experience stable to accelerated growth trends. This growth is anticipated to be supported by stable oil prices, high demand for real estate, robust economic growth, and supportive government policies. Markaz’s overall real estate sector index scores for Kuwait, UAE, and Saudi Arabia are projected to reach 2.9, 3.8, and 3.55, respectively, compared to the scores for the second half of 2023.

The report on Kuwait’s real estate sector highlights market stability anticipated during the first half of 2024, driven by several positive factors. The Kuwaiti economy is expected to grow by 3.6% annually, mainly due to anticipated growth in non-oil sectors.

Additionally, stability in interest rates and an increase in project activity are foreseen. The International Monetary Fund’s oil price estimates, along with Kuwait’s decision to continue reducing voluntary oil production, contribute to price stability.

Inflation rates in Kuwait remained relatively stable in the consumer price index during the last six months of 2023, supported by state policies aimed at reducing local food prices. Residential rental rates saw a modest increase of 3.4% annually during this period.

Credit growth to the private sector declined from 9.1% to 2.5% annually in October 2023. However, it is expected that credit growth will be supported in the first half of 2024 by the approaching peak of interest rates, ongoing project activities, and increasing job opportunities for citizens, despite potential negative impacts from rising interest rates and continued oil production reductions.

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