New Market Research Report: Kuwait Real Estate Report Q4 2010

Fast Market Research recommends "Kuwait Real Estate Report Q4 2010" from Business Monitor International, now available
 
Oct. 8, 2010 - PRLog -- Kuwait may not have had to deal with the massive over-building of commercial real estate that has taken place in, say, Dubai, but the last two years have been challenging. Rental rates fell by 15-20% in most sub-sectors last year and have continued to fall since the beginning of 2010. With one or two exceptions, the falls in rental rates that have taken place this year are less brutal than that envisaged by our in-country sources when we interviewed them earlier in the year - but that is the best that can be said.

In the interviews that we conducted in July 2010, our in-country sources suggested that rental rates should start rising again, but only by the single digits. In essence, the sluggish recovery of the Kuwaiti economy should not produce anything more than a modest rise in demand for real estate.

In February 2010, the National Assembly gave its approval to a US$108bn infrastructure development package. However, it is not clear what the actual impact of this will be on either the economy in general or the commercial real estate sector in particular. For the time being, we envisage that growth in Kuwait's construction sector will remain anaemic. The early 2010 interviews with our in-country sources suggested that there is a distinct lack of investor confidence and an absence of major new projects.

Within the commercial real estate sector, net rental yields rose across the board during 2009. The implication is that capital values have fallen by more than rental rates over the last year or so. Rental yields are notably higher in the Al-Jahara industrial sub-sector and the Kuwait City retail sub-sector than elsewhere. Given the uniformity of yields across the entire real estate sector in 2008, this strikes us as being somewhat anomalous. We therefore expect that yields in these two sub-sectors will fall during 2011-2014 so that they converge with yields in other sub-sectors. In general, though, we expect that yields will slip down towards the levels that were prevailing in 2008.

Key Features Of This Report

This is the latest edition of a new series of industry reports published by BMI that seeks to identify the key dynamics of the real estate sectors of 44 countries around the world, some of which are developed and some of which are, in every sense, emerging markets. Once again, the questions that we seek to answer for each country remain as follows: What are the main issues that will matter to actors in and around real estate development in the country concerned, both over the long and the short term? What are the main constraints that they face? What are the key insights that one garners when one compares the real estate sector of the country concerned with its peers in other countries?

In Q3 we have introduced a very substantial new improvement to the reports. We have incorporated data and qualitative observations provided to us by commercial real estate agents operating in the countries we survey. As a result we have gained a much clearer picture of the balance between demand and supply in each of three main sub-sectors - office, retail and industrial. We have also introduced a new approach to the forecasting of rental yields, which is discussed in the methodology sector of this report.

In Q4, we have incorporated a lot of new data in relation to rents and yields in 2010. We gained this data by way of a new round of interviews with our in-country sources in mid-2010. In some cases, the latest information from our sources has caused us to make significant revisions to our forecasts for 2011-2014. We asked our sources to indicate what growth in rents is likely for 2011. We explain their answers in the Forecast Scenarios.

For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/87242_kuwait_real_estate_repor...

Partial Table of Contents:

Executive Summary
SWOT Analysis
- Kuwait Real Estate/Construction SWOT
- Kuwait Economic SWOT
- Kuwait Business Environment SWOT
Regional Real Estate Overview
- Table: Middle East And Africa's Office Markets At A Glance - Rents, 2009-2011 (US$ per square metre per month)
- Table: Middle East And Africa's Retail Markets At A Glance - Rents, 2009-2011 (US$ per square metre per month)
- Table: Middle East And Africa's Industrial Markets At A Glance - Rents, 2009-2011 (US$ per square metre per month)
Real Estate Market Overview
- Table: Kuwait's Real Estate Market - Rental, 2008 And 2009 (KWD per square metre per month)
- Table: Kuwait's Real Estate Market - Net Yield, 2008 And 2009 (%)
- Table: Kuwait's Real Estate Market - Terms Of Contract/Lease
- Table: Kuwait's Real Estate Market - Available And Vacant Space
Forecast Scenario
- Real Estate Outlook
- Table: Kuwait's Real Estate Markets - Rentals In Squarer Metres Per Month (KWD)
- Table: Kuwait's Real Estate Markets - Net Yield, 2008-2014 (%)
- Construction Industry Outlook
- Table: Kuwait's Construction Industry, 2008-2014
- Macroeconomic Outlook
- Table: Kuwait - Economic Activity
Business Environment
- Real Estate/Construction Business Environment Rating
- Table: Middle East And Africa Real Estate/Construction Business Environment Ratings
- Kuwait's RECBER
- Middle East Project Finance Ratings
- Table: Design And Construction Rating
- Table: Commissioning And Operating Rating
- Table: Overall Project Finance Rating
- Kuwait's Business Environment
- Table: BMI Business And Operational Risk Ratings
- Table: BMI Legal Framework Ratings
- Table: Foreign Direct Investment Inflows Into The Middle East And Africa, 2006-2008
- Table: BMI Trade Ratings
- Table: Kuwait's Top Export Destinations, 2000-2008 (US$mn)
Company Monitor
- Al-Ahlia Contracting Group (ACG)
- Gulf Consult
- National Real Estate Company
- Pearl Of Kuwait Real Estate Company
- Salhia
- Tamdeen Group
- United Real Estate Company (URC)
BMI Methodology
- How We Generate Our Industry Forecasts
- Construction Industry
- Bank Lending
- Real Estate/Construction Business Environment Rating
- Table: Weighting Of Indicators
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Full Table of Contents is available at:
-- http://www.fastmr.com/catalog/product.aspx?productid=8724...

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 http://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 http://www.fastmr.com or call us at 1.800.844.8156.

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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.
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