Category: Kuwait Retail Sector

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Gate Mall

March 29, 2023 | Estater, Kuwait Retail Sector | No Comments

Gate mall, Kuwait is one of the prominent fashion destinations in Egaila. The mall is well known for its shopping, entertainment, and dining experiences in the location. Located among various small retail centres across the 104th road, Egaila, the Gate mall stands out with some of the best national and international brands across various shopping categories. Debenhams, H&M and Zara are some of the prominent fashion outlets in the mall. Entertainment facilities like Grand Cinemas, Fun city also form a major attraction in the mall. Various F&B outlets like Friday’s, Zufa, Shake Shack, Pistachio and Kashounat Al Bait offer a wide range of dining options in the mall. The restaurants offer a wide variety of cuisines including, Arabic, Indian, Chinese, Japanese and American cuisines.


1. Shopping in Gate Mall: The Gate mall houses approximately 500 retail shops across 6 floors. It offers a great shopping experience for the customers allowing them to choose from a wide range of lifestyle products. The shops cater to all the segments of customers across various age groups and brand preferences. Some of the prominent brands include Zara, Riva, American Eagle, The Athlete’s foot, La vie En Rose, Lauren Vidal, Swarovski Calzedonia, Dune London and many more.

2. F&B in Gate Mall: The Gate mall offers a great variety of food options including fine dine, food joints, coffee shops and cafes. Some prominent F&B options include TGI’s Friday’s, Zufa, Emirgan Sutis, Burger Boutique, McDonald’s, Pizza Hut, Pink Los Angeles and many more. A wide variety of choices are available in the mall serving famous cuisines from different parts of the world.

3. Entertainment and Leisure activities in Gate Mall: Along with the great shopping experience, the Gate mall offers some great entertainment and leisure activities. Grand Cinemas offer a great movie experience in the mall. Similarly, there are other entertainment options for kids like Fun City, Game Store and Babydo by Occa which makes the mall a perfect leisure destination for families.

4. Other Facilities in Gate Mall: The Gate mall also facilitates various emergency services and facilities including first aid, customer care, free Wi-Fi, baby service, free porter service, disability support service and valet parking.

Major Attractions in The Gate Mall:

The Gate mall offers various entertainment and leisure activities for the people of various age groups. The major attractions of the mall include:

1. The Grand Cinemas: The Cinema is first of its kind in Cinemas with just 17 seats in Gate Mall. The luxury theatre is specifically designed to offer an optimal view to each viewer. It is designed to offer privacy along with a relaxing experience in reclining leather armchairs and cozy blankets.

2. Fun City: Fun City offers some of the best entertainment experience for the children from 1-12 years of age. It is an ideal play centre designed for the kids to learn while playing. The play area offers ample space for kids to slides, climb, jump and enjoy other play activities.

Interesting Facts about Gate Mall:

  1. The total gross leasable area for the mall is estimated to be around 35,550 m2 as per Estater estimates.
  2. The malls are predominantly a fashion destination with fashion, shoes and accessories account for approx. 65% of the total GLA
  3. Entertainment category accounts for approx. 16% of the total GLA. Grand Cinema Cinemas and Fun City being some of the largest tenants in the mall.
  4. Lefties occupy a maximum of 14 units in the mall.

Shop Your favourite brands in Gate Mall Kuwait

Gate mall houses a wide range of fashion brands, offering the customers a great variety to choose from. Fashion brands including apparels shoes, cosmetics and accessories account for 65% of the malls leasable area. H&M, Zara, Lefties, Trends and Riva are some of the large fashion stores in the mall. The mall offers a one stop solution to choose from a wide mix of fashion accessories like Riva, Payless, Deichmann, Charles and Keith and Parfois. Apart from kids play area, the mall also has some premium kids toys store like Debenhams and Hamleys. Debenhams occupies one of the largest stores in the mall accounting for approx. 6% of the total GLA.

Cafes, Fine & Bistro Dining at The Assima Mall Kuwait

The Mall also has some of the best Dining and F&B options available including TGI’s Friday’s, Zufa, Emirgan Sutis, Burger Boutique, Burger King, Mcdonald’s, Pizza Hut, Pink Los Angeles. One can choose from a wide variety of foods and cuisines available.

Cafes and Coffee Shop in Gate mall:

  1. Starbucks: Starbucks is one of the most popular coffee chains offering a wide variety of customised coffee options. Starbucks positions itself as not just a cafe but also a place or community, a comfortable third place away from the demands of work and home.
  2. Esquires: Esquires Coffee is again a popular coffee shop chain offering a wide range of foods and beverages including organic coffee, cakes, muffins, healthy salads, and sandwiches.
  3. Cafe Bazza: Cafe Bazza offers a wide range of food choices including breakfast options, beverages, wraps, tandoors, and other main course meals. The place is designed to depict the traditional as well as the modernity of Kuwait.  

Dine In Restaurants in Gate mall:

  1. Cuts Steak House: Cuts is a Southern American style steakhouse originally from Atlanta. They offer fine dine experience with speciality in steaks, shrimps, grits, burgers and sandwiches.
  2. The Yellow Chilli: The Yellow Chilli Restaurant by famous Indian chef Sanjeev Kapoor offers a fine dine experience with cuisines particularly from India. The Restaurant serves the signature dishes by the celebrity chef.
  3. Mr. Greek: Mr. Greek is a fast food dine in option available in Gate mall famous for its Mediterranean dishes. The restaurant serves salads, pitas, burgers, wraps and other combos.

Located among a cluster of malls, one can say gate mall provides a unique shopping experience for the people willing to explore a wide range of fashions brands under one single roof. The mall also provides a unique and lavish cinema experience in the city as well as an interactive play area for children, which makes it a great shopping destination in the area.

Marina Mall

March 29, 2023 | Estater, Kuwait Retail Sector | No Comments

Marina mall is one of the biggest shopping malls located along the waterfront on Salem Al Mubarak St, Salmiya, Kuwait. It is centrepiece of the famous mixed-use Marina World development and linked to several large building like Marina Crescent, Waterfront & Marina Waves.

Marina Mall is famous for one of the largest spectacular glass domes and a large beautiful glass fountain as its point of focus, equipped with a sail that automatically moves in the sun’s direction.

The mall is known for its food, entertainment, and shopping opportunities. Top national and international brands in a variety of shopping categories are available at Marina Mall. American Eagle, H&M, Zara and Austin Reed are some of the mall’s well-known top fashion brands. Entertainment facilities like Fun Zone, Cinescape, Below Zero and Yacht Riding are the mall’s major attractions. Enjoying the most recent movies in Cinescape provides you with an entertaining and dramatic experience. The first pedestrian suspension bridge in a commercial complex in Kuwait, the suspended glass bridge is a thrill to walk on and looks out over the Arabian Gulf Street.


1. Shopping in Marina Mall: The Mall has 194 shopping brands spread across 2 floors and more than 150 retail stores. Global brands from various industries have their stores in the mall, as the premium shopping destination attracts customers in large numbers. The mall provides stores for Health, Footwear, Beauty Products, Jewellery, Finance, Apparel & many more. The mall allows the customer to choose from a variety of lifestyle items. The Mall includes some of the prominent brands like Zara, American Eagle, H&M, Zara, Austin Reed, Calvin Klein, Arabian Oud, The Athlete’s Foot, Miniso, Milano, River Island, Victoria Street, Foot Locker and many more.

2. F&B in Marina Mall: The Marina mall houses approximately 81 dining restaurants & 10 cafes. The mall has a wide range of dining options, such as fine dining, fast food joints, coffee shops, and cafes which makes it a popular weekend destination in this part of the city. Starbucks Coffee, The Chocolate Bar, TGI Friday’s, Costa Coffee, KFC, Burger King, MacDonalds, Paul Depuis, Zaatar, and many more are popular food and beverage options present in the mall. The mall provides an extensive variety of restaurants offering well-known dishes from throughout the globe.

3. Entertainment and Leisure activities in Marina Mall: Marina Mall is famous for some of its best entertainment and leisure activities in Kuwait. Owing to its location, It has become one of the most preferred entertainment complex in the neighbourhood. While Cinescape Marina offer a great movie experience, there are other entertainment options like Fun Zone Park, Below Zero, Marina FM and Marina Yatch Club which make the mall an ideal vacation spot for families.

Major attractions in Marina Mall:

The mall provides a variety of leisure and entertainment services for individuals of all ages. The major key attractions of the mall include-

1. Marina Yacht Club: Marina Yacht Club is a major attraction in Marina Mall with space for 144 berths. If you are into Yacht riding, you may take a cruise, go on a boat trip, and have an amusing time at the Marina Yacht Club.

2. Marina FM:Marina FM is the first private radio station in Kuwait. It offers the audience a great music experience in a distinct way. The FM studio is strategically located on the second floor with a view of ground floor which enables an amazing view from the studio unlike the traditional FM studios.

3. Cinescape: Cinescape Marina is one of the popular places listed under movie theatre in Salmiya . It is a luxury theatre specifically designed to offer an optimal view to each viewer with 4 screens. It is designed to offer privacy along with a relaxing experience while enjoying your movie.

4. Below Zero: Below Zero offers one of the best entertainment experiences for children & their family, allows to have a fun ice-skating experience while learning the value of physical fitness, dedication, and commitment.

5. Fun Zone Park: Fun Zone Park is an entertainment park for kids in Marina Mall with 1,070 sqm. as per Estater estimates. The two main activities to attract kids that are soft playground & trampoline park. It is the perfect play area for children to learn while having fun. There is plenty of scope in the play area for children to slide, climb, jump, and engage in other play activities.

Interesting Facts about Marina Mall:

  1. According to Estater estimations, Marina Mall’s total gross leasable space is close to 30,900 m2.
  2. The mall is primarily a destination for fashion and around 57% of the total GLA allotted to clothing, footwear, and accessories in the mall.
  3. The entertainment category covers up to 8% of the total GLA.
  4. Two of the mall’s biggest tenants are Decathalon and Zara.
  5. Cinescape & Victoria Secret occupy a maximum of 4 units each in the mall.
  6. This mall showcases amazing glass fountains as its centrepiece with one of the biggest glass domes in the region.
  7. The Mall is linked with a glass-enclosed bridge to Marina Crescent, a seafront component lined with international cafes and restaurants.
  8. The Mall directly connects to the Marina Crecent by a panoramic, 100-meter long, air-conditioned bridge.

Shop Your favourite brands in Marina Mall Kuwait:

Marina Mall allows their customers to choose from a wide range of local as well as international fashion brands. Estater estimates 57% of the malls’ leasable area is occupied by fashion brands, which include clothing, footwear, cosmetics, and accessories. Some of the major clothing retailers at the mall are Decathlon, Zara, H&M, Vavavoom, and American Eagle. With approx. 8% of the total GLA, Decathlon is one of the larger stores in the mall followed by Zara with 7% of the total GLA.

Cafes, fine & dining in Marina Mall Kuwait:

The Mall offers some of the top food and beverage venues, such as Starbucks Coffee, The Chocolate Bar, TGI Friday’s, Costa Coffee, KFC, Burger King, MacDonalds, Paul Depuis, Zaatar, and many others. Many dishes and cuisines are available for one to pick from.

Cafes and Coffee Shop in Marina Mall:

  1. Starbucks: One of the most well-known chain cafes, Starbucks offers a wide range of specialty coffee selections. A pleasant resting place away from the pressures of work and family, Starbucks presents itself as more than just a cafe.
  2. Costa Coffee: Costa coffee is the people favourite’s coffee shop & largest fast growing coffee chain in all over world now-a-days. It offers a hug variety of coffee options to the costumers.
  3. The Chocolate Bar: The Chocolate Bar is the best place to indulge the atmosphere, the cuisine & the service. Costumers can gather here with their family & friends and enjoy.

Dine In Restaurants in Marina Mall:

  1. Paul: Paul provides guests with a truly European experience with classic cuisine and first-rate service. It is best known for using select ingredients to dish out a whopping variety of French delicacies. Paul specialises in trademark breads, viennoiseries, artisanal pizza, sandwiches, coffee, and other hot & cold beverages, as well as a large choice of beautifully presented desserts.
  2. Zaatar: Zaatar is one the most favourite restaurant in Marina Mall. It offers delicious food & efficient welcoming manger and staffs.

Overall, the mall offers a unique combination of shopping combined with entertainment options like Yacht Club, Cinescape, Below Zero and Fun Zone Park. The mall also offers a wide range of cafes and dine in options which makes it a great lifestyle destination for families.    

Assima Mall

March 29, 2023 | Estater, Kuwait Retail Sector | No Comments

Assima Mall is one of the newest shopping malls in Kuwait. The mixed-use property includes the largest commercial mall in the heart of Kuwait City and was opened on 8 November 2021. Assima Mall boasts a phenomenal lifestyle and entertainment that includes a cinema, gym, spa, and entertainment, as well as numerous dining options throughout the mall.

The Assima, meaning capital in Arabic, is a mixed-use project developed by Assima Real Estate Company, wholly owned by Salhia Real Estate Company. The project commenced in October 2015 and was completed at the end of 2021. Bringing together all the conveniences of a mini city within the heart of Kuwait City with a total built up area of 380,000 square meters. Featuring three main components which are, a mall with urban parks, an office tower with stunning sea-views and cityscapes, and a residence hotel. The project also features ample parking to serve the three main components of the project. Following are the quick things what one can experience in Assima Mall.

1. Shopping in The Assima Mall: With over 265 stores, spread over six floors, Assima Mall is one stop destination for any shopper. Mall features a mix of brands from contemporary, to high-street, many of which are introduced in Kuwait for the first time. Local and international labels are available, including well-known brands such as Charles & Keith, Calvin Klein, Mango, Tommy Hilfiger, Bershka and many more.

2. F&B in The Assima Mall: The Assima Mall’s food court is a popular destination for foodies, with a variety of options to choose from. The mall utilizes its outdoor spaces with finesse; there are a range rooftop cafes and restaurants alongside the urban park – perfect for the cooler months. The uniquely designed spaces serve a range of cuisines, perfect for every taste and palate – there are multitude of options to choose from, be it a quick bite, a leisurely lunch, or even a more contemporary meal.

3. Entertainment Places in The Assima Mall: The Assima Mall has an enormous lifestyle and leisure element which includes a cinema, gym, spa, and great entertainment for the whole family. It is the perfect place to spend your weekend or weekday with your family.

4. Amenities in The Assima Mall: The mall is designed for comfort and convenience, with amenities such as clean restrooms, prayer rooms, and plenty of seating areas. There is also plenty of parking, both indoor and outdoor.

Interesting Facts About Assima Kuwait:

  1. Estater estimates that the total Gross Leasable Area (GLA) of Assima is more than 70,000 m2.
  2. Fashion, Shoes, and Accessories stores account for 24% of the GLA.
  3. IKEA and Monoprix – two main anchor stores – account for about 12% of total GLA.

For Unforgettable Experiences, Entertainment Destination at Assima Mall in Kuwait

The Assima Mall caters to a variety of entertainment options for visitors of all ages. Here are some of the fun and exciting destinations you can find in The Assima:

1. Rainbow Park in The Assima Mall – The Rainbow Park is an indoor amusement park located on the second floor of the mall. It is a entertainment amusement park for children which features a host of indoor rides, roller coaster, bumper cars, and arcade games.

2. Sky Zone in The Assima Mall – Sky Zone is a space for children and adults to move, create and enjoy. Sky Zone is an aerial park for children located on the second floor of the mall. It allows children to explore different aerial games.

3. National Geographic Ultimate Explorer in The Assima Mall – National Geographic Ultimate Explorer attraction gives families the chance to travel to the farthest reaches of outer space, go to the bottom of the ocean and top of Everest without ever leaving the mall.

4. Cinema & Theatres in The Assima Mall – Cinescape – Kuwait National Cinema Company (KNCC) – is a movie theatre chain and film distributor in Kuwait. Cinescape offers a range of movies of different genres and offers comfortable seating and an amazing movie watching experience. They have kiosk of refreshments to enjoy during the movie.

Shop Your Favourite Brands at The Assima Mall Kuwait

Fashion, Shoes, and Accessories stores account for 24% of GLA in the Assima Mall Kuwait. While looking for a variety of goods and services in one convenient location, Assima Mall is the best choice. This upscale mall, which is located close in Kuwait City, features everything from clothes stores to electronics stores and even eateries. Customers can expect ease and quality from their shopping experience at the Assima Mall Kuwait, which offers more than 50 international brands.

Clients can browse through designer brands like Calvin Klein, Mango, Tommy Hilfiger and more without having to go online or hunt throughout the city for what they require. Customers can not only purchase a variety of luxury goods, but they can also purchase a variety of everyday items! From fashion accessories like handbags and shoes to groceries like fresh fruits and vegetables, you will undoubtedly find something to suit your budget and taste preferences. Some of the big shopping stores in The Assima Mall are:

1. IKEA in The Assima Mall – IKEA is a Swedish furniture and home décor retailer with stores all over the world, including Kuwait. The store sells a wide range of furniture, home decor, and household items that are both functional and fashionable. IKEA’s most popular items include beds, sofas, chairs, tables, kitchen cabinets, lighting fixtures, and textiles. Furthermore, IKEA in Assima Mall Kuwait has a restaurant where customers can enjoy Swedish-inspired food and beverages. For a fee, the store also offers delivery and assembly services.

2. Monoprix in The Assima Mall – Monoprix in Assima Mall is a major French retail chain with its headquarters in Clichy, Hauts-de-Seine, France, near Paris. The company’s stores combine food retailing with fashion, beauty, and home products.

Cafes, Fine & Bistro Dining at The Assima Mall Kuwait

The Assima Kuwait is a well-liked spot for dining, shopping, and entertainment, offering a variety of cuisines to suit all preferences and price ranges. Let us look at The Assima Mall Kuwait’s cafes, fine dining, and bistro options for dining.

Cafes in The Assima Mall Kuwait:

1. Costa Coffee in The Assima Mall – Costa Coffee is a popular coffeehouse chain that serves a variety of coffee, tea, and snacks. Costa branches sell hot and cold drinks, sandwiches, cakes and pastries, and snacks. In 2020, the brand collaborated with three chocolate brands (Quality Street, After Eight and Terry’s) for some of their limited-edition Christmas drinks.

2. Lavazza in The Assima Mall – Luigi Lavazza, shortened and stylized as LAVAZZA, is an Italian manufacturer of coffee products. Founded in Turin in 1895 by Luigi Lavazza, it was initially run from a small grocery store at Via San Tommaso 10. The business is currently administered by the third and fourth generations of the Lavazza family. The company operates several retail coffee shops. The shops offer traditional coffee drinks as well as whole bean and ground coffee for home use.

3. Nespresso in The Assima Mall – Nestlé Nespresso S.A., trading as Nespresso, is an operating unit of the Nestlé Group, based in Lausanne, Switzerland. Nespresso machines brew espresso and coffee from coffee capsules or pods in machines for home or professional use, a type of pre-apportioned single-use container, or reusable capsules (pods), of ground coffee beans, sometimes with added flavourings.

Fine Dining in The Assima Kuwait:

1. Mia Restaurant in The Assima Mall – Mia Restaurant is a well-known Mediterranean restaurant that offers a range of hummus, pita bread, falafel and many more. The restaurant’s elegant decor and attentive service make it a perfect place for a fine dining experience.

2. Little Ruby’s in The Assima Mall – Little Ruby’s is a well-known restaurant that combines Italian and American flavours. Signature dishes at the restaurant includes Pizza, Pasta, Lasagne and many more.

Fast Food and Bistro Dining in The Assima Kuwait:

1. Mcdonald’s in The Assima Mall – McDonald’s Corporation is an American multinational fast food chain. McDonald’s is the world’s largest fast food restaurant chain, serving over 69 million customers daily in over 100 countries in more than 40,000 outlets as of 2021. McDonald’s is best known for its hamburgers, cheeseburgers and French fries, although their menu also includes other items like chicken, fish, fruit, and salads. Their best-selling licensed item are their French fries, followed by the Big Mac.

2. Elevation Burger in The Assima Mall – Elevation Burger serves organic burgers, fries, and shakes in a fast-casual setting. The restaurant’s dedication to employing high-quality food and environmentally sustainable processes makes it a popular choice among health-conscious guests

3. Taco Bell in The Assima Mall – A variety of exquisite Mexican wraps, sandwiches, and salads are available at the restaurant known as Taco Bell. For a quick snack or casual dinner, the cafe’s welcoming ambiance and helpful staff make it a great choice.

Overall, the six levels Assima Mall features a mix of brands from contemporary, to high-street, many of which are new to Kuwait. The mall includes the largest hypermarket in Kuwait City. Assima Mall is within walking distance of the busy business district of Kuwait City and transforms the shopping experience in the city centre. Before the opening of the Assima Mall, the retail options in Kuwait City were high end and limited options. Assima Mall has filled this gap in the market by offering a wider range of retail outlets, while at the same time offering a hypermarket in the heart of the city.

Despite the challenges posed by the global geo-political uncertainty and a budding financial crisis in 2023, Kuwait’s real estate market has remained resilient. In fact, it continues to be a lucrative investment opportunity for both local and regional investors alike. However, as with any investment decision, it’s important to have a solid strategy in place. That’s where building a data-driven real estate investment strategy comes into play.

By leveraging market intelligence, investors can make informed decisions that increase their chances of success and minimize risk. In this blog post, we’ll explore how to build a successful real estate investment strategy in Kuwait using market intelligence, how to gather and analyze market data, identify investment opportunities, and develop a data-driven investment strategy with this guide.

Importance of Market Intelligence in building a Data-Driven Investment Strategy

Any effective data-driven investment strategy must include market intelligence. It aids in the trend identification, competitive analysis, and investment decision-making processes for investors. Market information can assist investors understand market trends and create plans to increase their profits. Market intelligence can be used to assess the state of the market, find prospective business opportunities, and assess potential risks. Investors can create a realistic picture of their investment portfolio and make wise decisions about where to put their money by comprehending the fundamental elements influencing market performance. Also, it can assist them in creating plans to optimize risks while seizing market possibilities.

Gathering Market Intelligence in Real-estate

Gathering market intelligence in real estate is more crucial than ever today. With the advancement of technology, it is now easier than ever to gain access to market data and make informed judgements. This information can be used to better understand real estate trends, uncover prospective investment possibilities, and assist purchasers in finding the best property for their needs. Market information is increasingly being used by real estate brokers to assist them make better decisions and provide better services to their clients. They can gain a better understanding of the market and how it affects their customers’ assets by analysing data from diverse sources such as public records, surveys, and analytics tools. Let’s divide this section into 3 categories:

1. Finding the sources of market intelligence in Kuwait real estate:

Finding reliable sources of market intelligence is essential for making informed decisions in the Kuwait real-estate market. Knowing the right sources of information can help investors and developers stay up to date on the latest trends, regulations, and opportunities in this rapidly changing market. To find the best sources of market intelligence, it is important to look at both public and private sources. Public sources include government websites, local newspapers, and industry reports. Private sources include real estate agents, brokers, and industry professionals who have access to insider knowledge about the Kuwait real-estate market.

2. Key factors to analyse the market:

When studying the Kuwait real-estate market, several major elements must be considered. Economic conditions, population studies, government regulations, infrastructural development and availability of capital, etc.. Many of these factors influence the market for real estate in Kuwait and can assist investors in making sound investment selections. By carefully comprehending and analysing these critical aspects, investors can acquire insights into the current health of the Kuwait real-estate market and prepare accordingly for future investments.

3. Analysing of demographic and economic trends:

Many demographic and economic variables influence demand and supply dynamics in Kuwait’s real estate market. Kuwait’s population growth has been a major source of demand for housing and commercial spaces, resulting in an increase in property prices. Development of new cities such as Mutla, South Sabah AL Ahmad, Nuwaiseeb, etc. offer scores of new investment opportunities. Furthermore, expatriates make up a sizable section of Kuwait’s population, that opens up several opportunities in Investment Areas.

Determining the Investment Opportunities

While investing in Kuwait real estate, various considerations must be considered. They include the location of the property, the supply and demand equation, possible rental returns and capital appreciation, the legal and regulatory environment, and so on. Let’s see how to determine investment opportunities in Kuwait’s real estate market:

  1. Identifying the potential investment areas in Kuwait:

For investors wishing to diversify their portfolios, Kuwait’s real estate industry is an appealing investment possibility. With a burgeoning population and a thriving economy, the country provides a diverse range of prospective investment opportunities. There are numerous chances for investors to profit from, ranging from residential properties to commercial buildings. Before making any decisions, investors should evaluate the current market trends. While analysing potential investments, consider factors such as population growth, economic stability, and government laws. Furthermore, investors should examine the dangers connected with investing in Kuwait’s real estate market, such as political uncertainty and rising interest rates in 2023. Investors can make informed decisions about where to invest their money to optimise returns by considering these aspects. We have detailed this in one of our blogpost.

2. Evaluating investment opportunities using market intelligence:

The Kuwait real estate market presents several investment opportunities that can be evaluated using market intelligence. Gathering and analysing data from numerous sources to get insights into industry trends, demand and supply dynamics, and price patterns is what market intelligence entails. This information can be used by investors to estimate the possible risks and rewards of investing in the Kuwait real estate market. Population increases, economic development, and government regulations can all have an impact on market performance. Investors can find the most attractive investment possibilities by examining existing and future demand for real estate. Furthermore, market intelligence can assist investors in making educated selections about the types of properties to invest in, such as residential, commercial, or industrial properties. Estater’s MI platform delivers the most updated reports, data visualisations, data tables, catchment and demographic analyses, and benchmarking studies suited to your target investment.

Building a strong Data-Driven Strategy for Investments

Developing a strong data-driven strategy for real estate investments necessitates a systematic approach that includes defining investment objectives, gathering and analysing relevant data, developing investment hypotheses, testing these hypotheses, developing an investment strategy, and monitoring and refining the strategy over time. Following these stages allows investors to make informed decisions based on market trends and patterns, find opportunities for long-term capital appreciation or regular income streams, and efficiently manage risk. A data-driven strategy can assist investors in navigating difficult market conditions, identifying emerging trends and opportunities, and making more informed decisions that are in line with their investment goals.

1. Developing a real estate investment strategy based on market intelligence:

Creating a real estate investment strategy based on market intelligence is critical for real estate success. It entails acquiring and analysing data on numerous real estate market elements such as supply and demand, demographics, catchment study, economic trends, and local legislation. An investor can use this information to uncover possible possibilities and make informed judgements about where to put their money. Market information, for example, might assist an investor in identifying neighbourhoods that are undergoing expansion and have a strong demand for rental properties. Using this information, an investor can devise a plan for acquiring and managing properties in these areas.

Estater Meter will keep you up to date on economic, expansion, demographic, and developmental changes in your target neighbourhoods, as well as provide instant estimates on target properties. Our market intelligence solution MI on the other hand will provide you with the most recent reports, data charts, data tables, catchment and demographic analytics, and benchmarking studies tailored to your target investment.

2. Setting real estate investment goals and objectives:

Establishing real estate investment goals and objectives is a vital element in developing a successful investment strategy. Objectives should be specific, measurable, achievable, relevant, and time-bound (SMART). Investment goals could include generating a specified level of cash flow, achieving a specific return on investment, or acquiring a certain number of properties within a specific timeline. Goals, on the other hand, are the exact steps that an investor takes to achieve their goals. Doing market research, evaluating prospective investment opportunities, examining financial data, and negotiating with sellers are all examples of objectives.

Estater assists you in achieving your investment objectives by using scientific and super flexible financial models. We can match your investment strategies and provide you with consulting services.

3. Developing a real estate investment risk management plan:

Creating a risk management strategy is an essential component of investing in the real estate market. The plan should identify potential hazards and provide mitigation actions. Market fluctuations, property damage or loss, tenant default, and changes in zoning rules or regulations are all common risks in real estate investing. To mitigate these risks, investors can diversify their portfolio, undertake comprehensive due diligence before purchasing a property, seek insurance coverage, and keep enough financial reserves. Also, investors should watch and analyse market developments on a regular basis and alter their approach as needed to keep ahead of potential threats. Investors can reduce their exposure to potential losses and assure the long-term success of their investments by implementing a well-thought-out risk management plan.

How Estater helps for the real estate Investments in Kuwait?

Estater consultancy and advisory services provides detailed and comprehensive reports on different real estate sector in Kuwait that can provide intricate details in these trends related to:

  1. Market insights: Inventory build-up and occupancy trends.
  2. Location analysis: Market gaps and catchment analysis.
  3. Competitor Benchmarking: Estater can help businesses understand their competition and make strategic decisions.
  4. Financial Modelling: Estater can provide you highly flexible financial model which can be easily modified based on your inputs.
  5. Leasing Trends: Lease rate and tenant mix analysis.
  6. Demographic analysis: Combining sectoral data with demographics of the areas, Estater can help businesses understand their target audience.
  7. Consultancy: We offer consulting services for many aspects of real estate reports, such as financial modelling, benchmarking, demographic analysis, catchment analysis, and so on. Our Estater Meter and Market Intelligence solutions will provide you with customised results depending on your preferences.

One of the key worry for the real estate sector in the current Covid19 pandemic is its impact on the retail sector. While the retailers are worried about the impact on their sales, owners of retail malls and plazas are concerned about the impact on occupancy and lease rates. These two are closely interlinked and this blog creates a small analysis to address this.

Estater estimates that Kuwait by the end of 2019 has around 5.14 million m2 of retail space spread across hundreds of properties. Of this, around 16% is in Grade A retail malls such as The Avenues, 360 Degree, Salhia Complex, Marina Mall, Gate Mall, etc. The remaining 84% includes all the souqs, coops, retail properties in Shuwaikh, Al Rai, Dajeej and hundreds of retail plazas across the country. The occupancy ratio for this entire space is around 90% with average lease rate estimated around KD 14.9 per m2 per month.  

As the theory of retailing shows, a retailer pays anywhere between 7% to 20% of its gross sales as rental to sustain its business. The percentage varies mostly within this range across different cities in the world, different properties and for different shops within each property. Central Statistical Bureau of Kuwait carries out household expenditure survey every five years. The last such survey was done in 2013; before that in 2008. The total expenditure and its breakup for Kuwaiti and non-Kuwaiti households is shown in the table below.

Table 1: Monthly Expenditure pattern 2008-2013 in Kuwait

Using suitable growth rates in line with economic growth between 2013 and 2019, the chart below shows our estimates of monthly household expenditure in 2019. Average monthly expenditure by a Kuwaiti household was KD 3,7091 in 2019 and KD 750.8 by a non-Kuwaiti household.

Chart 1: Monthly Household Expenditure on All Items

Not all this expenditure is done in retail properties; spending on health, education maintenance of houses, etc. is all outside retail properties. Note that spending on “housing, water, electricity, gas and other fuels” alone account for 46% of Kuwaiti household expenditure and 38% non-Kuwaiti household. Using suitable matrix, we have estimated the monthly spending of Kuwaiti and non-Kuwaiti households in retail malls. This is shown in the chart below.

Chart 2: Monthly Household Spending in Retail Properties

Based on our estimates for different spending items, we have projected decline in household retail spending for the year 2020 and 2021. We have accounted for 14% decline in 2020 and another 2% in 2021. Note that most of the retail properties (barring the essential items) are closed for one and half months due to lockdown; this alone can lead to around 8-10% decline in the year 2020. Therefore, 14% decline over the full year due to economic difficulties is very much possible. 

In 2019, there were 310,442 Kuwaiti households and 502,508 non-Kuwaiti households (as per data of Public Authority for Civil Information). Multiplying their respective monthly retail spending, we get KD 6.52 billion as annual spending in Kuwait in all retail properties.

With total 5.14 million m2 retail area with average lease rate of KD 14.9 per m2 per month. This means that the retail properties receive KD 922.3 million as rental payments every year. This represents 14.2% of the rental spending.

Table 2: Estimates of Household Spending in Retail Properties Kuwait (2019)

The retail space will undergo some expansion as a number of properties are already under construction (such as Assima Mall, 360 Degree Outlet Mall, etc.). Over this time period, number of households will also increase due to their natural growth.

We believe that the ratio of rentals to retail spend will decline substantially over the next two years as the retailers will not be able to afford the same rental levels as before. We project (refer to the chart below), the ratio will decline from 14.2% in 2019 to 13.0% in 2020 and further to 12.5% in 2021.

Chart 3: Projected Trend for Retail Space and Rentals as % of Retail Spending

Keeping in mind all factors such as decline in the rental to retail spend ratio, increase in households, decline in retail spending, we have projected that the rental income of all properties in Kuwait is expected to decline to KD 722.8 million in 2020 (from KD 922.3 million in 2019) and further to KD 690.2 million in 2021. This decline could be the combined effect of higher vacancy and lower lease rates.

We also project that the average lease rate will fall to KD 11.1 per m2 in 2020 and to KD 10.4 per m2 in 2021. This is 25.7% decline in the average lease rate in 2020 and another 6.4% decline in 2021.

Chart 4: Projected Trend for Rentals and Average Lease Rate (per m2)

The rate of decline will vary considerably across locations and across property types. However, suffice to say that the retail space sector is looking at more than 30% decline in average lease rates over the next 18 – 21 months.

The drop in the lease rentals will also lead to substantial decline in retail property valuations. In the first year itself, the combined effect of drop in income and increasing risk premium in the market can lead of substantial devaluation in retail properties. This will present a challenge to the banking sector as many of the retail properties are mortgaged.

Estater (part of REMI) is the largest real estate intelligence platform in Kuwait and Bahrain. With wide raging database on properties across all sectors, Estater use sophisticated Geographical Information Systems and data science to map and predict real estate market behavior.