Executive SummaryAfter a long period of low interest rates, the market expects Fed to start the interest rate rise soon which may impact many asset classes but more speci cally the real estate. E¬ect of implementing Basel III norms to real estate lending and usage of real estate assets as collateral, are expected to have an impact on the asset class. And finally, the geopolitical tailwinds in the Middle East region always induces additional risk premium. In this paper, we analyze the impact of these events for the Kuwait Real Estate market. The three key components of the real estate market in Kuwait include Residential, Investments and Commercial real estate properties. During 2013, r esidential real estate, also labeled as private housing, accounted for around half of the market (49 per cent) in terms of total value of the deals made, followed by investments (38 per cent) and commercial (11 per cent) sectors.
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Key Questions Addressed in this report
- What are the various factors that could impact Kuwait real estate market?
- How could Basel III implementations aff¬ect usage of real estate as collateral?
- How could geopolitical risks a¬ect real estate values?