Real Estate in Kuwait
Kuwait Real Estate Sector
As the fourth largest exporter of oil in the world, Kuwait’s oil industry is the backbone of the economy. Kuwait has set forth the ambitious Kuwait Development Plan (KDP) that entails big public sector spending on infrastructure and social needs.
Kuwait has seen significant increase in its population in last one decade. Its overall population has grown by 72% from 2000 to 2012, a CAGR of 4.6%. The contribution of expats in the total population has continuously shown an upward trend and accounted for 68.3% of total population in 2012. Around 45.50% of the population falls under the age bracket of 20-39 years. Higher proportion of younger population has led to higher demand for the housing sector. Per capita income of the Kuwait has also grown significantly, which will further support the growth in the residential real estate sector. Moreover, Kuwaiti nationals mostly prefer to stay in private owned houses (villas) located in low density area, whereas expats reside in rented apartments constructed for investment purposes. Demand for rented apartment is significantly high which can be seen from the vacancy rate, which was only 5% in last five years. Rental yields from these apartments are in the range of 7-9%.