Investment real estate in Kuwait most stable - expert

KUWAIT (KUNA) - Investment Commercial real estate in Kuwait is the most stable sector in terms of assets and this is particularly due to high demand on apartments, chairman of Real Estate Union Tawfiq Al-Jarrah said on Sunday.
Investment real estate registered 94 percent occupancy in apartments which shows the dire need for new projects in this domain, Al-Jarrah told KUNA after the opening of a real estate exhibition organized by Al-Masar Group.
He said value of assets of investment real estate jumped by 15-20 percent over the past two years. Al-Jarrah attributed the increase to low supply of apartment buildings.
"I expect stability in this sector despite financial challenges that the Kuwaiti real estate market is currently facing," he said.
As to commercial real estate, Al-Jarrah said this sector was growing specially in the retail shops in shopping malls. This is cont rary to commercial shops which are witnessing drop in the price of each square meter, he added.
Occupancy in commercial real estate does not exceed 50 percent, said Al-Jarrah, with a maximum KD six per square meter.
Meanwhile, General Manager of Al-Masar Group Saud Murad said existing of cash among visitors of real estate exhibitions and low funding by the banks have triggered less organization of such exhibitions.
Murad hoped the local real estate market would gain momentom soon.