Markaz Releases Real Estate Sector Reports For Kuwait, Saudi Arabia, And UAE

The Kuwait Financial Center, known as "Markaz," has published a series of comprehensive reports on the real estate sectors of Kuwait, Saudi Arabia, and the United Arab Emirates (UAE), aimed at equipping investors with timely and thorough insights into market dynamics and investment prospects.

These reports, crafted by Marmore MENA Intelligence, the research arm of Markaz, delve into the performance of the real estate sector in the latter half of 2023 and offer forecasts for the first half of 2024. Drawing from essential macroeconomic indicators such as oil and non-oil GDP growth, financial standings, investments, inflation rates, interest rates, population growth, and employment generation, as reported by Al-Jarida daily.

Projections for the initial half of 2024 suggest stable to accelerated growth trends in the real estate sector across the GCC region. This anticipated growth is underpinned by stable oil prices, heightened demand for real estate, robust economic expansion, and supportive governmental policies. Markaz's overall real estate sector index scores for Kuwait, UAE, and Saudi Arabia are forecasted to reach 2.9, 3.8, and 3.55, respectively, compared to the scores recorded in the latter half of 2023.

The report focusing on Kuwait's real estate sector accentuates the expected market stability throughout the first half of 2024, buoyed by several favorable factors. The Kuwaiti economy is poised to grow by 3.6% annually, primarily driven by anticipated growth in non-oil sectors.

Moreover, stability in interest rates and a surge in project activities are anticipated. The International Monetary Fund's projections for oil prices, coupled with Kuwait's commitment to continue reducing voluntary oil production, contribute to price stability.

Inflation rates in Kuwait remained relatively steady in the consumer price index during the final six months of 2023, supported by governmental policies aimed at mitigating local food prices. Residential rental rates witnessed a modest annual increase of 3.4% during this period.

Credit growth to the private sector experienced a decline from 9.1% to 2.5% annually in October 2023. Nonetheless, it is anticipated that credit growth will be bolstered in the first half of 2024 by the imminent peak of interest rates, ongoing project endeavors, and expanding employment opportunities for citizens, notwithstanding potential adverse effects from rising interest rates and sustained reductions in oil production.

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