Kuwait Office Rents Are Expected To Rise In 2024

According to Al-Qabas Daily, Modon Group, a prominent real estate company, predicts that average rents for administrative offices in the Capital, Hawalli, and Jahra governorates will increase between 1.3% and 2% in the next year.

Group's specialized report on administrative real estate performance and forecasts for the upcoming period indicates that the average rent per square meter for offices currently varies between 6 dinars per square meter (minimum) in Jahra Governorate and 14 dinars per square meter (maximum) in Capital Governorate.

According to the report, office rent prices in the Capital Governorate increased by 300 fils per square meter in 2023, reaching 11.8 dinars per square meter on average. In 2024, Modon Group projects a 1.3% increase, and an average of 11.9 dinars per meter will be reached.

In 2024, the average rental price per square meter in Hawalli Governorate is expected to increase by 2%, from 10.3 dinars to 10.5 dinars. Capital Governorate is expected to grow by 1.3%, followed by Al-Jahra Governorate with an expected growth of 0.8%, reaching an average rent of 9.2 dinars per square meter in 2024.

Omar Najm, CEO of Modon Group, emphasized that demand for office and administrative real estate in Kuwait depends on several factors, including efforts to diversify income sources, encourage private investment, boost the services sector, economic growth, declining interest rates, infrastructure improvements, technological advancements, and Kuwait's sustained high average per capita income, all contributing to increased demand.

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