The real estate market in Kuwait witnessed significant growth in 2019, with the market hitting $12.04 billion, according to a report by Kuwait Finance House.
The number of real estate deals signed in Kuwait during the period also increased by 6.4 percent year-on-year.
A total of 6765 real estate deals were completed in Kuwait last year; however, the transaction value for 2019 dropped by 1.5 percent when compared to the previous year.
A ProTenders analyst told the media, “Driven by Kuwait’s Vision 2035 to transform Kuwait into an international hub for business and commerce, a further investment of $100 billion is planned in the future towards achieving the vision.”
“According to the Ministry of Finance, many more projects are expected to be completed by 2023. A core pillar in the vision is economic diversification away from oil dependency. The diversification plan focuses on infrastructure projects to support the transport and logistics sector and the healthcare sector to improve quality of life.”
He further revealed that around $4 billion worth of contracts will be awarded in the real estate sector in Kuwait this year.
However, real estate sales in the fourth quarter of 2019 fell by 11 percent to $2.80 billion, when compared to the third quarter of the same year. The drop in sales is mainly due to a drop in investment and also drop in commercial property sales
The number of transactions in the fourth quarter also dropped by 7.4 percent quarter-on-quarter to 1,556.
The outlook for the real estate sector in Kuwait is positive for 2020 as the sector is expected to thrive on the backdrop of its impressive results in 2019.