Rising economic activity seen as Kuwait office space demand hits 8.75m sqm in 2025
Kuwait City generates $400 million in annual office rentals; private sector demand for offices to reach 4.91 million sqm by 2027; luxury office rents peak at 14.5 dinars per sqm in landmark towers; occupancy rates expected to climb to 82% by 2027 despite government relocations
A recent report by Aayan Real Estate Company revealed that total demand for office space in Kuwait reached 8.75 million square meters in 2025, with the public sector accounting for 47 percent and the private sector for 53 percent.
The report projects that rising economic activity will drive higher employment, further increasing demand for office space. Kuwait City dominates the market, holding 75 percent of total office space, generating an estimated $400 million in annual rental income for real estate companies and investors.
Within Kuwait City, more than 270 properties are available for lease across East, Qibla, and Mirqab, totaling 1.56 million square meters. The private sector owns over 300 office properties in the capital, of which 275 are leasable while the rest are occupied by their owners.
The report highlights that private sector demand stood at 4.64 million square meters in 2025, expected to rise to 4.91 million by 2027.
Total available office space across Kuwait has reached 2.09 million square meters, with Hawalli holding 16 percent (328,160 sqm) and Farwaniya 5 percent (101,680 sqm). Occupancy is projected to climb to 82 percent by 2027, though concerns remain about the relocation of government agencies to their own towers, which could impact private sector demand.
Rental prices for luxury offices range between 6 and 14.5 dinars per sqm, with premium locations limited to landmarks such as Al Hamra Tower, KIPCO Tower, Al Raya, Capital Tower, Al Salhiya, Al Tijaria, Injazat, Mazaya, and Business City Tower. Mid-range offices lease for 5.5 to 12.5 dinars per sqm, with rates expected to remain firm through 2026–2027 as landlords push to boost occupancy.
The report added that office demand is met by three types of properties:
- 49% from commercial properties available on the market
- 11% from properties controlled by a single entity
- 40% from other property types
It also noted thousands of office units exist within industrial zones such as Shuwaikh, the Free Zone, Al-Rai, Al-Dajeej, Ardhiya, Subhan, and Sulaibiya.
