According to a report done by Kuwait Finance House (KFH) “The year 2019 proved hugely a great year for Kuwait’s real estate sector witnessed solid growth with the net transactional value hitting almost KD 3.7 billion ($12.04 billion), the second-highest in the last four years.”
The report also suggested a rise in the overall deals that surged 6.4 percent to 6,765 as compared to the previous year, however, it still has dropped by 1.5 percent from 2019. As per a ProTenders Analyst that stated to Media that “the transformation of Kuwait as an international hub for business which is because they are driven with the Kuwait’s vision 2035, as they have planned for a further investment of $100 billion towards achieving the vision.”
“According to the Ministry of Finance, more projects are expected to be completed by 2023. A core pillar within the vision is economic diversification faraway from oil dependency. The diversification plan focuses on infrastructure projects to support the transport and logistics sector and therefore the healthcare sector to enhance quality of life.”
The overall real estate market in Kuwait has highly been volatile in the recent years. There are in excess of 2,296 active projects, valued at a total of $445.9 billion. He further revealed that around $4 billion worth of contracts are going to be awarded within the land sector in Kuwait this year.
The analyst also pointed out citing the company’s own propriety quarterly data, the Urban Sector accounts for 82% of total active projects by volume, but only 43% by value.
However, land sales within the fourth quarter of 2019 fell by 11 percent to $2.80 billion, in comparison to the third quarter of an equivalent year. The drop by sales is especially thanks to a drop by investment and also drop by commercial property sales.
The number of transactions within the fourth quarter also dropped by 7.4 percent quarter-on-quarter to 1,556. The outlook for the pivotal real estate sector in Kuwait looks quite positive for 2020 as the sector is predicted to thrive on the success of its impressive leads to 2019.
