New Business research report from Business Monitor International is now available from Fast Market Research
Boston, MA -- (SBWIRE) -- 12/20/2013 -- We believe that the real estate sector in Kuwait will increase in some sectors and remain stable in others due to a reduction of oversupply in the office and retail subsectors. However, without a significant change in the supply and demand dynamic, we predict that there will be no change to net yields in 2014 for all subsectors.
Kuwait's commercial real estate sectors are developing in different directions and at varying rates. Overall market sentiment remains positive and signs generally point towards a recovery after several difficult years. The most recent data and market news corroborates our expectations that the market is stabilising and increasing in some subsectors. The sector continues to be characterised by frequent, although ultimately minor, fluctuations in rental rates.
View Full Report Details and Table of Contents
While BMI is generally optimistic about Kuwait, there are several pitfalls to the current scenario. One significant one is if soft market conditions persist - particularly in the office segment where dynamics are still dictated by a legacy of oversupply. Our outlook would also be considerably tempered should political uncertainty in the country or its neighbours escalate.
Future evolutions in Kuwait's political sphere will continue to present substantial risks to our growth forecasts. The Kuwaiti economy will remain on a moderate expansion path heading into 2014, with growth supported by robust private consumption and a modest rise in oil production and exports. We forecast real GDP growth of 3.0% for 2013, slowing slightly to 2.6% in 2014. We remain cautious about Kuwait's fixed investment outlook, and note that political evolutions will continue to present both upside and downside risks to our growth forecasts.
Government stimulus measures continue apace but growth remains dampened as project delays and claims of corruption impede development. Low growth is expected throughout the forecast period to 2022, with the highest rate being at 3.3% y-o-y in 2013.
- The National Bank of Kuwait has announced that the accumulated value of real estate transactions in the country in June rose 27% year-on-year (y-o-y) to KWD339 (US$1.18bn).
- Kuwait-based United Real Estate Company has sold 10 of its plots in the Mubarakiya area in Kuwait and two plots in Entertainment City, Qatar. The company made the sales for US$46.7mn, making a combined net profit of US$9.7mn. The 10 Mubarakiya plots cover an approximate total area of 1,295sq m, representing 1% of United's total assets with a book value of US$16.3mn, giving the company a net profit of US$3.1mn. The sale of the Entertainment City plots generated around US$6.6mn.
Key BMI Forecatsts:
- Rental rates will increase by 5-10% in the Kuwait City office subsector, and by 5% in the Al-Jahara office subsector.
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Business research reports at Fast Market Research
You may also be interested in these related reports:
- United States Real Estate Report Q1 2014
- Philippines Real Estate Report Q1 2014
- Mexico Real Estate Report Q1 2014
- Japan Real Estate Report Q1 2014
- Qatar Real Estate Report Q1 2014
- India Real Estate Report Q1 2014
- Pakistan Real Estate Report Q1 2014
- Bahrain Real Estate Report Q1 2014
- Egypt Real Estate Report Q1 2014
- Venezuela Real Estate Report Q1 2014
Copyright © 2005-2014 - SBWire, The Small Business Newswire - All Rights Reserved - Important Disclaimer
Contact Us: 888-4-SBWIRE (US) - 920-593-5640 (International)