Kuwait’s real estate market showed strong resilience last year despite challenges faced by certain sectors. Demand for real estate is expected to continue throughout the current year, providing new opportunities for investors, individuals, and developers across various real estate sectors.
The real estate transactions in 2024 experienced remarkable growth, rising by 34% to reach approximately 3.73 billion dinars through 4,950 transactions by the end of December 2024, compared to 2.78 billion dinars for 4,442 transactions in 2023. This increase highlights a strong dynamism in the market and a return of confidence among investors.
The increase in real estate trading can be attributed to heightened activity across all sectors, except for the coastal strip, which saw a significant decline of 44%. Its value dropped to approximately 77.6 million dinars through 12 deals in 2024, compared to 138.5 million dinars through 18 deals in 2023.
The decline in the coastal strip stands as the only exception to the otherwise strong performance of the real estate sectors, highlighting the potential challenges this sector may face in the future.
However, the performance of the remaining sectors remains robust, reflecting the continued demand for investment and development in the real estate market.
Remarkable Activity
Real estate transactions in the “Investment” and “Commercial” sectors experienced remarkable growth. The total value of the investment sector surged by 47.4%, reaching KWD 1.2 billion through 1,218 transactions, compared to KWD 831 million in 2023 through 1,149 transactions.
Investment properties are known for offering attractive returns that often outperform many other investment opportunities, making them an appealing option for investors looking to diversify their portfolios and enhance returns.
Additionally, real estate investments provide benefits such as relative value stability and the security of continuous rental income, further strengthening their appeal as a reliable long-term investment choice.
However, investors should exercise caution and carefully consider factors such as location, market conditions, and management costs before making investment decisions. These elements play a crucial role in determining the potential profitability and risk associated with real estate investments.
The commercial sector also saw remarkable growth, with its total value increasing by 73.3%, reaching approximately 745.4 million dinars through 135 transactions. In comparison, the total value of the sector in 2023 was around 430.2 million dinars, completed through 117 transactions. This growth reflects the rising demand for commercial real estate, further strengthening the investment appeal of this sector in the market.
The warehouse sector also experienced significant growth, with its value reaching KWD 27.2 million through 14 transactions, compared to KWD 16 million through 7 transactions in 2023. This represents a remarkable growth of 70%, highlighting the increasing demand for warehouse space in the real estate market.
One of the most notable outcomes in 2024 was the significant increase in exhibitions’ trading, which surged by 911.1%. The total value reached approximately KWD 45.4 million through 9 transactions, compared to KWD 4.5 million through a single transaction in 2023.
Residential Transactions
The residential sector is often regarded as a safe haven for individuals and companies, even during general downturns in the real estate market. This sector continues to show growth, albeit at a slower pace.
In 2024, the total value of the residential sector increased by 18.5%, reaching approximately 1.5 billion dinars through 3,527 transactions, compared to 1.3 billion dinars through 3,114 transactions in 2023.
This increase reflects the continued demand for residential units and the stability of activity in the sector, indicating strong confidence among investors and potential property owners.
The residential sector remains a key driver of growth in the overall real estate market and continues to attract investments, driven by the increasing needs of individuals and families for housing.
The residential sector accounted for 42% of the total value of transactions and 71.2% of the total number of deals. With 3,527 residential deals out of a total of 4,950 transactions during the period, this highlights the sector’s significant role in the real estate market. It underscores the continued attractiveness of residential investments and its essential contribution to the overall movement and growth of the market.
Ahmadi Governorate led the residential sector, accounting for 33.7% of the total number of transactions with 1,190 deals. It was followed by Hawalli Governorate with 617 deals, and the Capital Governorate with 478 deals.
Mubarak Al-Kabeer Governorate saw 471 deals, while Farwaniya Governorate recorded 434 transactions. Jahra Governorate ranked last with 337 residential deals.
Other Sectors
The total value of transactions in the craft sector increased by 9%, reaching 48.4 million dinars through 34 deals, compared to 44.5 million dinars through 35 deals in 2023.
The industrial sector saw no deals executed in 2024, a contrast to 2023, which recorded a single deal worth 5.5 million dinars. However, 2024 did see the completion of a significant bank sale deal valued at 9.3 million dinars.
Numbers in Real Estate
- 8.5% growth in the value of “residential” transactions to 1.5 billion dinars
- 47.4% increase in “Investment” trading to 1.2 billion dinars
- 73.3% growth rate of “Al-Tijari” to 745.4 million dinars
- 8.9% growth rate of “Al-Harafi”… reaching 48.4 million dinars
- 911.1% growth rate of “exhibitions” to reach 45.5 million dinars
- 70% growth in “warehouses” transactions to 27.2 million dinars
- 44% decline in coastal strip trading to 77.6 million dinars
Source: Al Qabas
