Kuwait's retail sector has been one of the country's key growth areas throughout the past 12 months, according to Cavendish Maxwell.

The firm released its Kuwait Property Market Report for 2018-2019 this week, showing trends within the real estate industry.

According to the report, the oil sector accounted for approximately 55 per cent of Kuwait’s total GDP in 2018, while the non-oil sector grew by compound annual growth rate (CAGR) of 4 per cent from 2010 to 2018.
 
Sales of residential properties, particularly in the investment (apartment) category, have been strong since the downturn in 2017, while rising prices and an increase in the volume of transactions indicated positive performance in 2018.

More stable rents also contributed to the rise in sale prices for both apartments and villas.
 
Several projects are scheduled for completion in Kuwait in line with the New Kuwait Vision 2035 plan.

They include major mixed-use developments such as Tamdeen Square in Sabah Al Salem, and Al Andalous Complex in Hawalli.

There is also the proposed Al Basma Tower in Kuwait City, and Al Warba Island Residential Tower on Al Warba Island.
 
The report revealed that Kuwait’s retail sector showed robust growth in 2018, with several big brands entering the market as a result of citizen’s high spending power.

New malls and expansions have been announced, to add to the existing 50 malls of varying scale, quality and tenant mix.
 
Kuwait’s office market performance was less than robust, with large amounts of space still vacant.

Oversupply and limited demand due to overall regional downturn have impacted the market. The only free trade zone in Kuwait, Shuwaikh, was also shut down in 2019 after a decision by the Council of Ministers to cancel the programme.
 
As part of the New Kuwait Vision 2035 plan, the government is set to embark on the creation of five island destinations – Bubiyan, Warba, Failaka, Maskan and Aouha – to boost tourism and leisure offerings in the country.

Seven new hotels are either in the construction or near completion.

Click here to download the report.

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