Modon Group, a prominent real estate entity, anticipates an increase in average rents for administrative offices in the Capital, Hawalli, and Jahra governorates in the coming year, with growth rates ranging between 1.3% and 2% compared to the current year, reported Al-Qabas Daily.
According to a specialized report released by the group on the performance of administrative real estate and its projections for the upcoming period, the average monthly rent price per square meter for offices currently varies between 6 dinars per meter (minimum) in Jahra Governorate and 14 dinars per meter (maximum) in the Capital Governorate.
During the year 2023, the report notes that the average rent price per square meter for offices in the Capital Governorate increased by 300 fils per meter, reaching an average of 11.8 dinars per meter. Modon Group expects this upward trend to continue in 2024, projecting a 1.3% increase and reaching an average of 11.9 dinars per meter.
Hawalli Governorate is expected to experience the highest rate of increase in the average rental price per square meter, rising by 2% from 10.3 dinars to 10.5 dinars per square meter in 2024. Following closely, the Capital Governorate is predicted to have a 1.3% growth, while Al-Jahra Governorate secures third place with an anticipated growth of 0.8%, reaching an average rent of 9.2 dinars per square meter in 2024.
Omar Najm, the CEO of Modon Group, emphasized that the demand for office and administrative real estate in Kuwait hinges on several factors, including efforts to diversify income sources, encourage private investment, boost the services sector, economic growth, declining interest rates, infrastructure improvements, technological advancements, and the sustained high average per capita income in Kuwait, which contributes to overall demand growth.