Kuwait’s real estate market is more solid than other GCC real estate markets and is the least affected by the economic and political conditions, says an expert.
Walid Al Azzaz, CEO of Al Enmaa Real Estate, says: “The economic and political conditions have had a very negative impact on some real estate markets in the region,” pointing out that the markets of Saudi Arabia and Bahrain have been hit hardest by these conditions, as the decline in oil prices and political events in the region have had a direct impact on their performance.
Talking to Kuwait-based Al-Qabas, Al Azzaz says that what distinguishes the local real estate market from other real estate markets in the Gulf region that the main driver in the Kuwaiti market is the local investor – either a company or an individual – and there is no foreign investor active in the market.
Meanwhile, the Gulf real estate markets that depend on foreign investors suffer during times of crisis, whether economic or political, as foreign investors are wary of investing in troubled markets.
On the other hand, the Saudi Arabia real estate market, which witnesses the biggest boom in peak times, will be affected to a large extent by the crisis.