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Kuwait Real Estate Report Q1 2014 - New Study Released


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2013-12-10 09:16:54 - New Business research report from Business Monitor International is now available from Fast Market Research

We believe that the real estate sector in Kuwait will increase in some sectors and remain stable in others due to a reduction of oversupply in the office and retail subsectors. However, without a significant change in the supply and demand dynamic, we predict that there will be no change to net yields in 2014 for all subsectors.

Kuwait's commercial real estate sectors are developing in different directions and at varying rates. Overall market sentiment remains positive and signs generally point towards a recovery after several difficult years. The most recent data and market news corroborates our expectations that the market is stabilising and increasing in some subsectors. The sector continues to be characterised by frequent, although ultimately minor, fluctuations in

rental rates.

Full Report Details at
- www.fastmr.com/prod/752044_kuwait_real_estate_report_q1_2014.asp ..

While BMI is generally optimistic about Kuwait, there are several pitfalls to the current scenario. One significant one is if soft market conditions persist - particularly in the office segment where dynamics are still dictated by a legacy of oversupply. Our outlook would also be considerably tempered should political uncertainty in the country or its neighbours escalate.

Future evolutions in Kuwait's political sphere will continue to present substantial risks to our growth forecasts. The Kuwaiti economy will remain on a moderate expansion path heading into 2014, with growth supported by robust private consumption and a modest rise in oil production and exports. We forecast real GDP growth of 3.0% for 2013, slowing slightly to 2.6% in 2014. We remain cautious about Kuwait's fixed investment outlook, and note that political evolutions will continue to present both upside and downside risks to our growth forecasts.

Government stimulus measures continue apace but growth remains dampened as project delays and claims of corruption impede development. Low growth is expected throughout the forecast period to 2022, with the highest rate being at 3.3% y-o-y in 2013.

Recent Developments

* The National Bank of Kuwait has announced that the accumulated value of real estate transactions in the country in June rose 27% year-on-year (y-o-y) to KWD339 (US$1.18bn).
* Kuwait-based United Real Estate Company has sold 10 of its plots in the Mubarakiya area in Kuwait and two plots in Entertainment City, Qatar. The company made the sales for US$46.7mn, making a combined net profit of US$9.7mn. The 10 Mubarakiya plots cover an approximate total area of 1,295sq m, representing 1% of United's total assets with a book value of US$16.3mn, giving the company a net profit of US$3.1mn. The sale of the Entertainment City plots generated around US$6.6mn.

Key BMI Forecatsts:

* Rental rates will increase by 5-10% in the Kuwait City office subsector, and by 5% in the Al-Jahara office subsector.
* Rental rates will increase by 5-7% in the Kuwait City retail subsector, and by 3% in the Al-Jahara retail subsector.
* Rental rates will increase by 2% in the Al-Jahara industrial subsector.

Report Table of Contents:

BMI Industry View
SWOT
- Political
- Economic
- Business Environment
Industry Forecast
- Office
- Table: Office Forecast Rents (KWD per m2/month)
- Table: Office Forecast Net Yield, 2010-2017 (%)
- Retail
- Table: Retail Forecast Rents (KWD per m2/month)
- Table: Retail Forecast Net Yield, 2010-2017 (%)
- Industrial
- Table: Industrial Forecast Rents (KWD per m2/month)
- Table: Industrial Forecast Net Yield, 2010-2017 (%)
- Construction And Infrastructure Forecast Scenario
- Table: Kuwait Construction And Infrastructure Industry Data, 2011-2016
- Table: Kuwait Construction And Infrastructure Long-Term Forecasts, 2017-2022
- Construction and Infrastructure Forecast Scenario
Macroeconomic Forecasts
- Macroeconomic Forecast
- Table: Kuwait - Economic Activity
Industry Risk Reward Ratings
- Risk Reward Ratings
- Rewards
- Risks
Market Overview
- Kuwait City
- Salmiya
- Al-Jahara
- Office
- Table: Terms Of Rental Contract/Leases - H212
- Table: Historic Rents - 2012-2013 (KWD per m2/month)
- Table: Net Yield, 2012-2013 (%)
- Retail
- Table: Terms Of Rental Contract/Leases -2013
- Table: Historic Rents - 2012-2013 (KWD per m2/month)
- Table: Net Yield, 2012-2013 (%)
- Retail Sales Indicators
- Table: Retail Sales Indicators, 2010-2017
- Industrial
- Table: Terms of Rental Contracts/Leases - 2013
- Table: Historic Rents - 2012-2013 (KWD per m2/month)
- Table: Net Yield, 2012-2013 (%)
Competitive Landscape
Company Profile
- National Real Estate Company (NREC)
- Pearl Of Kuwait Real Estate Company
- Salhia
- Tamdeen Group
- United Real Estate Company (URC)
Demographic Forecast
- Demographic Outlook
- Table: Kuwait's Population By Age Group, 1990-2020 ('000)
- Table: Kuwait's Population By Age Group, 1990-2020 (% of total)
- Table: Kuwait's Key Population Ratios, 1990-2020
- Table: Kuwait's Rural And Urban Population, 1990-2020
Methodology
- Industry Forecast Methodology
- Sources
- Risk/Reward Ratings Methodology
- Table: Real Estate Risk/Reward Rating Indicators
- Table: Weighting Of Indicators

About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

For more information about these or related research reports, please visit our website at www.fastmr.com or call us at 1.800.844.8156.


Author:
Bill Thompson
e-mail
Web: www.fastmr.com
Phone: 18008448156

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