Kuwait’s Real Estate Market Outlook for H1 2024
Kuwait is expected to see a stable real estate market in the first half of 2024, supported by several positive factors.
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The economy is forecasted to grow at a rate of 3.6% annually, a significant improvement from a contraction of 0.6% in 2023. This growth is mainly driven by the anticipated expansion of the non-oil sector by 3.5%, alongside stable interest rates and increased activity in projects. The IMF predicts oil prices to average at USD 79.92 per barrel in 2024, contributing to price stability. This is further supported by Kuwait’s ongoing voluntary reduction in oil production.
In the second half of 2023, Kuwait observed relatively stable inflation, helped by the reduction in domestic food prices and a decrease in global food costs. Housing rents experienced a 3.4% increase over the year, while the growth in private sector credit notably slowed from 9.1% to 2.5% year-on-year as of October 2023.
The first half of 2024 might see a boost in credit growth, helped by expected peaks in interest rates, continuous project activities, and further employment opportunities for Kuwaiti citizens, although high interest rates and continued cuts in oil production could pose challenges.
Despite a downturn in residential sales, transaction volumes, and activities in segments like the Istithmari and commercial sectors during the first three quarters of 2023, the overall real estate market remained stable. Prices and rents were consistent, and there was a gradual normalization of demand post-pandemic.
After considering all the economic indicators, reports are showing that there is optimism for the stability and potential increase in activity within Kuwait’s real estate sector throughout 2024, especially towards the latter part.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
This collaboration will extend into the fourth phase of Azizi’s Riviera project in MBR City, with Cummins supplying top-tier power generators.
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Azizi Developments, a prominent private developer in the UAE, and Cummins Inc., a global leader in power solutions design, manufacturing, distribution, and supply, are extending their partnership into the fourth phase of the large-scale Riviera project. Cummins, known for its diverse range of products including diesel, natural gas, electric, and hybrid powertrains, as well as powertrain-related components, like filtration, after-treatment, turbochargers, fuel systems, control systems, air handling systems, automated transmissions, electric power generation systems, batteries, hydrogen generation, and fuel cell products. The manufacturer is globally renowned for its excellence in both innovation and sustainability.
Mr. Farhad Azizi, CEO of Azizi Developments, said: “As we continue our collaboration with Cummins Inc. for the fourth phase of our flagship project, Riviera, we reaffirm our commitment to procuring and utilizing only the highest quality materials. This partnership highlights our dedication to providing exceptional lifestyles for our investors and end-users through the careful selection of premium components. We are confident that our now-broadened alliance with Cummins Inc. will help in maintaining the high standards established for Riviera and further elevate the benchmarks of quality and excellence.”
Riviera is part of Azizi Developments’ award-winning portfolio. It is a stylish waterfront lifestyle destination that comprises 75 mid- and high-rise buildings with approximately 16,000 residences.
Designed to introduce the French-Mediterranean lifestyle to Dubai, which is not merely about architectural art, but also about a certain ‘joie de vivre’ — a celebration of life, an exultation of spirit, Riviera represents a new landmark destination that is both residential and commercial, with an abundance of retail space. Riviera features three districts: an extensive retail boulevard, a lagoon walk on the shores of its 2.7 km-long swimmable crystal lagoon with artisan eateries and boutiques, and Les Jardins — a vast, lush-green social space.
With its strategic location near the upcoming Meydan One Mall and the Meydan Racecourse — home of the Dubai World Cup — as well as Dubai’s most noteworthy points of interest, Riviera represents one of Azizi Developments’ most coveted projects.
Azizi Developments’ Sales Gallery can be visited on the 13th floor of the Conrad Hotel on Sheikh Zayed Road.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
