GCC member to see $4bn worth of contracts awarded in Q1 2020, ProTenders says
Kuwait’s real estate sector has witnessed solid growth in 2019, with the value of transactions hitting $12.04 billion, the second highest in the last four years, a report by Kuwait Finance House (KFH) has said.
The report added that the number of deals rose by 6.4% to 6,765 over the last year. However, the transaction value for 2019 dropped by 1.5% when compared to the previous year, it stated.
During the last quarter, Kuwait’s real estate sales fell by 11% to $2.80 billion, as compared to Q3, mainly due to overall lower investment and commercial property sales. On an annual basis, real estate sales retreated by 26% due to lower commercial property and private residence sales, as well as a higher plunge in investment sector sales, the report pointed out.
A ProTenders analyst, speaking exclusively to MECN.com, added that the market in Kuwait has been highly volatile in recent years, and that there is currently a total of 2,296 active projects, valued at a total of $445.9 billion.
Citing the company’s own propriety quarterly data, the analyst pointed out that the urban sector accounts for 82% of total active projects by volume, but only 43% by value.
“Driven by Kuwait’s Vision 2035 to transform Kuwait into an international hub for business and commerce. a further investment of $100Bn is planned in the future towards achieving the vision,” the analyst said in a statement to MECN.com
“According to the Ministry of Finance, many more projects are expected to be completed by 2023. A core pillar in the vision is economic diversification away from oil dependency. The diversification plan focuses on infrastructure projects to support the transport and logistics sector and the healthcare sector to improve quality of life.
Kuwait will see $4 billion worth of contracts awarded in Q1 2020, with infrastructure leading the other sectors,” he concluded.