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How AVM is revolutionizing the Real estate Industry

May 10, 2023 | AI, AVM, Estater, Real estate | No Comments

The real estate industry has undergone a significant transformation in recent years by introducing new technologies that are changing how business is done. One such technology that is revolutionizing the real estate industry is the Automated Value Model (AVM).
AVMs are a game-changer in the real estate industry, providing an efficient and accurate method of property valuation. These models utilize advanced algorithms and machine learning techniques to analyze massive amounts of data, including property characteristics, market trends, and comparable sales, to estimate the value of a property. AVMs have completely revolutionized property valuations by offering faster, more reliable, and cost-effective alternatives to traditional appraisal methods. This innovation has benefited property owners and buyers and streamlined processes for lenders, real estate companies, and other stakeholders involved in real estate transactions. AVMs are transforming the real estate industry, enabling it to keep pace with rapid technological advancements.

What is an Automated Value Model in Real Estate?

An AVM is a computer-based mathematical model that estimates a property’s value in real estate based on various data inputs. Here we’ll look at how the AVM is revolutionizing the real estate industry, its main factors, and its impact on the players in the industry.

1. Improved Speed and Efficiency of Valuations

One of the most significant advantages of AVMs is that they provide faster and more efficient valuations of properties. AVMs can analyze large amounts of data quickly and give an estimate of a property’s value in real-time. This speed and efficiency help real estate professionals make faster decisions, which is especially important in a market where timing is everything.

2. Increased Accuracy and Consistency of Property Valuations

AVMs have been found to provide more accurate and consistent property valuations than traditional methods. In addition, AVMs consider a wide range of data inputs, including recent sales of similar properties, locations, and property characteristics. AVMs can also incorporate data on local market trends and economic conditions to provide more accurate and up-to-date valuations.

3. Enhanced Transparency and Objectivity in Real Estate Transactions

Another advantage of AVMs is their enhanced transparency and objectivity in real estate transactions. AVMs are based on algorithms that are applied consistently, which reduces the possibility of human error and bias. This enhances the integrity of the real estate transaction process, which is vital for both buyers and sellers.

4. Cost Savings and Reduction of Human Error

AVMs also offer significant cost savings and help reduce human error in real estate transactions. Traditional property valuations often require human appraisers to visit properties, which can be time-consuming and physically expensive. AVMs, on the other hand, can provide valuations quickly and at a lower cost. Additionally, AVMs are less susceptible to human error, which can lead to more accurate valuations and less chance of disputes.

The Impact of the Automated Value Model on Real Estate Players

The introduction of AVMs has significantly impacted the real estate industry and its players. For example, real estate professionals, such as real estate agents and appraisers, must now adapt to new technologies and learn how to use AVMs to provide better client services. Lenders are also using AVMs to make quicker and more informed lending decisions.

What will be the future of AVM in Real Estate?

The future of AVM in real estate looks bright, as several advancements will make AVMs even more effective and valuable.
Some of these advancements include:

Advancements in Machine Learning and Artificial Intelligence

Machine learning and artificial intelligence (AI) will help improve the accuracy of AVMs even further. AVMs will better identify patterns and make more accurate predictions as they collect more data.

Integration with Big Data Analytics

Integrating AVMs with big data analytics will help provide even more accurate property valuations. In addition, big data analytics can help AVMs analyze a broader range of data inputs, which will help provide more comprehensive evaluations.

Expansion of AVM Applications to Commercial Real Estate and Rental Markets

AVMs are currently used primarily in the residential real estate market, but there is potential for them to be used in commercial real estate and rental markets. AVMs can provide more accurate valuations for these markets as they become more sophisticated.

What is an Estater & role in the Real Estate industry?

Estater is a real estate data company providing a deep understanding of properties and locations; it stores, manages, and analyzes vast real estate data to help owners and potential investors better look over properties. Using AVMs, Geographic Information Systems (GIS), and Data Science, Estater helps make intelligent real estate decisions and provides property valuations to real estate professionals and lenders.

Using a lot of factors like accessibility index, property characteristics, comparable property prices, and historical data, Estater provides accurate and innovative AVMs to both buyers and sellers.

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By Estater

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.

Snapshot:

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.

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By Estater

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.

Snapshot:

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.    

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By Estater

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.

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By Estater

Building a Data-Driven Real Estate Investment Strategy for Kuwait Real Estate

March 27, 2023 | Estater, Kuwait Real Estate, Kuwait Retail Sector | No Comments

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.

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By Estater

Artificial Intelligence Impact on Real Estate Investment

March 21, 2023 | Bahrain Retail Sector, Estater, Kuwait Real Estate | No Comments

Real estate investment is one of the most traditional and prominent investments in the world. The real estate market is constantly changing and adapting to new technologies and economic trends. Various market disruptions in the past have now led to a more research backed approach in real estate. Artificial Intelligence (AI) has eased the process of real estate investment, in ways that were unimaginable a few decades ago.  Technological developments like AI market research, automated property recommendations and automated valuation models etc. are leading to a transformation in the real estate industry. In this blog, we’ll explore the impact of AI on real estate investment.

What is AI?

Before diving into the impact of AI on real estate investment, it’s essential to understand what AI is. AI is a technology that involves the development of intelligent machines that can perform tasks that would typically require human intelligence. These tasks include things like decision-making, problem-solving, and natural language processing.

Artificial Intelligence (AI) is revolutionizing various industries across the globe, and real estate is no exception. With AI, real estate investors can make data-driven decisions, automate tasks, and gain insights that were previously not possible. Here’s a closer look at how AI is impacting real estate investment:

How will AI lead to Improved Decision-making in real estate investment?

Real estate investment involves analyzing large amounts of data to make better decisions. AI algorithms can analyze data quickly, accurately, and in real-time. This enables investors to make decisions based on market trends, property value, and other key factors. With AI-powered decision-making, investors can identify opportunities and make informed choices to maximize their returns. This will lead to a reduction in decision making timelines.

For example, let’s say a company has an empty land area in the city of Jeddah and it is thinking of building an amusement park. With the help of AI, collecting and analyzing population data (age groups, families income rates and children number), and competition benchmarking of similar amusement projects might be done within a very fast time and at a fraction of the cost (compared to traditional feasibilities that take several months and may cost a lot).

How AI can help in Predictive Analytics in Real Estate?

AI can predict trends in real estate, enabling investors to make proactive decisions. With predictive analytics, investors can set their objectives, anticipate market trends, identify potential risks, and adjust their investment strategies accordingly. AI-powered predictive analytics can assist investors to spot market opportunities before others and optimize risk in their portfolio.

For example, AI collecting property’s location, size, age, and condition, as well as recent sales data for similar properties in the area would help the predictive model suggest how property values are likely to change in a certain area. Investors might choose to buy a property in that area in order to take advantage of potential future gains. Alternatively, if the model predicts a decline in property values, an investor might choose to sell a property in that area in order to avoid potential losses.

Smarter Property Valuation with AI

AI-powered tools such as automated valuation models (AVMs) use machine learning algorithms to evaluate a property’s value based on various hundreds of factors such as location, size, age, and other characteristics. This enables real estate investors to get accurate and reliable property valuations and make better investment decisions.

For example, an AI tool like ( Estater Meter) can analyze a vast amount of data, such as historical property prices, recent sales data, and demographic information, to provide a more accurate estimate of the property’s value.

The AI-powered valuation tool can factor in various features of the property and its surrounding location that may impact its value, such as proximity to schools, shopping centers, public transportation, and crime rates. By analyzing these factors, the AI tool can provide a more comprehensive and accurate valuation of the property.

Enhanced Customer Experience with AI in Real estate 

 AI-powered virtual assistants can provide real-time customer support and help investors address their queries and concerns promptly. This can improve the customer experience, increase customer satisfaction, and build stronger relationships with investors.
For example, a large real estate company with hundreds of clients would use an AI virtual assistant loaded with lots of answers and suggestions to help customers.

Can AI provide Personalized Investment Recommendations?

AI can provide personalized investment recommendations based on an investor’s financial goals, risk tolerance, and investment history, making it easier for investors to find properties as per his requirements. AI will reduce the efforts that need to be put in to find a suitable property or location.

For example, Mohamed wants to invest in real estate. AI algorithms can analyze Mohamed’s investment preferences based on his past income, the type of properties he has shown interest in, his online search history and his risk tolerance level. The AI can then recommend properties that align with Mohamed’s investment preferences.

How AI Detects Fraud?

AI algorithms can also detect fraudulent activity, such as fake property listings or false claims by potential tenants. Ruling out fraud or duplicate listings would be easier with the help of predefined algorithms. This can reduce the risk of deception for real estate investors.
For example, AI can use Natural Language Processing (NLP) techniques to analyze text data, such as emails.
For example, AI can identify certain keywords or phrases that are commonly used in fraudulent messages, such as “urgent” or “act now.” Or use Behavioral Analysis if a user suddenly logs in from a different location or device, the AI may flag this as potential fraudulent behavior.

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By Estater

The Avenues Mall

March 21, 2023 | Estater, Kuwait Real Estate, Retail Sector | No Comments

Kuwait’s The Avenues mall is a prime shopping center that has quickly become a destination for both local and international brands. The mall is well known for its excellent shopping experience, first-rate facilities, and diverse entertainment options. The Avenues is the largest shopping mall in Kuwait and one of the largest in the GCC region. The mall is located in Al Rai neighborhood, which is connected by the Fifth Ring Road on the south and Al Ghazali Street on the north.

The mall has several distinct sections such as 1st Avenue, 2nd Avenue, Prestige, Grand Avenue, etc.. Several national and international restaurants and shops, including those serving British, French, Dutch, Turkish, Swiss, and Arabic cuisine, can be found in the mall. The mall has the first Carrefour in Kuwait, and offers great dining at upscale outlets including P.F Changes and The Cheesecake Factory. Also, there are all the amenities like ATMs, restrooms, children play area, open seating area etc. Here’s a quick rundown of what you can expect from your visit to Kuwait’s The Avenues Mall.

  1. Shopping in The Avenues: With over 1,800 retail stores spread across three levels, the Avenues Mall is a shopper’s paradise. There’s something for everyone, from high-end luxury brands to low-cost fashion options. Local and international labels are available, including well-known brands such as Chanel, Gucci, Zara, H&M, and many more.
  2. Food & Beverages in The Avenues: The Avenues Mall’s food court is a popular destination for foodies, with a variety of options to choose from. You’ll find everything from fast food chains to upscale restaurants offering international cuisines. Whether you’re in the mood for sushi, burgers, or Italian food, it’s all available here.
  3. Entertainment Places in The Avenues: The Avenues Mall is more than just a place to shop; it’s got great places to have fun. There are several entertainment options available, including two cinemas, bowling alley, virtual reality games, and arcade games. There is also a children’s play area, making it an ideal destination for families.
  4. Amenities in The Avenues: 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 Avenues Kuwait:

1.  Estater estimates that the total Gross Leasable Area (GLA) of Avenues is more than 350,000 m2. This makes The Avenues the largest mall (outside Dubai) in the GCC region.

2.   Fashion, Shoes, and Accessories stores account for 26% of GLA.

3.   IKEA, Carrefour, and CenterPoint that are key anchor stores account for about 11% of total GLA.

4.   Starbucks occupies nine units in The Avenues Mall.

5.   There are over 10,000 parking spaces in total.

Visit The Avenues Entertainment Places for a Memorable Experience

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

  1. Magic Planet in The Avenues Mall – Magic Planet is an indoor amusement park located on the first floor of the mall. It offers a range of rides, games, and attractions, including a roller coaster, bumper cars, and arcade games.
  2. KidZania in The Avenues Mall – KidZania is an interactive children’s theme park located on the first floor of the mall. It allows children to explore different careers and role-play different jobs in a fun and educational environment.
  3. Bowling Alley in The Avenues Mall – The Avenues also has a bowling alley, which is a great place to hang out with friends and family.
  4. Cinema & Theatres in The Avenues Mall – The Avenues Mall in Kuwait houses two cinemas. One of the popular cinemas in The Avenues is the Cinescape, which offers a range of movies from different genres. The Cinescape is located on the first floor of the mall, and it has multiple screens with seating capacity of over 1,000 viewers. There is Vox Cinemas, which is located on the first floor of the mall. Vox also offers a range of movies and has multiple screens. Both Cinescape and Vox offer comfortable seating and state-of-the-art technology for an enjoyable movie-watching experience. They offer snacks and refreshments for movie-goers to enjoy during the movie.

Shopping at The Avenues Mall

Fashion, Shoes, and Accessories stores account for 26% of GLA in the Avenues Kuwait. While looking for a variety of goods and services in one convenient location, The Avenues Kuwait is the top choice. This upscale mall features everything from clothing stores to electronics stores and home appliances. Customers can expect ease and quality from their shopping experience at The Avenues Kuwait, which offers more than 150 international brands.

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. Furthermore, by participating in ‘The Avenues Rewards Program,’ visitors receive special discounts on select purchases as well as extra points every time they shop, allowing them to save money while exploring various outlets within the mall complex itself! Some of the big shopping stores in The Avenues are:

  1. IKEA in The Avenues 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 Avenues 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. Carrefour in The Avenues Mall – Carrefour in the Avenues Kuwait sells a wide variety of goods, including groceries, household items, electronics, appliances, clothing, and other items. The hypermarket is well-known for its right prices and frequent sales, making it a popular shopping destination for both locals and expats alike. The hypermarket is open seven days a week, from 9:00 a.m. to 12:00 a.m., and is located on the ground floor of the Avenues Mall, with easy access from the mall’s entrances and parking lots. Customer service has been praised as friendly and helpful, with employees going above and beyond to ensure customers have a pleasant shopping experience. In addition, their store is conveniently located within the mall complex, making it accessible from anywhere. Customers’ value when they shop here is further increased by their loyalty programme, which rewards customers who accrue points based on purchases made at other stores and can avail discounts on subsequent purchases. Carrefour continues to provide one of the greatest shopping experiences in The Avenues Kuwait thanks to its fantastic advantages for both locals and visitors looking for high-quality items at affordable prices.
  3. CenterPoint in The Avenues Mall – CenterPoint in the Avenues Kuwait offers a wide range of products, including clothing, shoes, accessories, cosmetics, and home goods. The department store is known for its trendy and fashionable merchandise, catering to both men and women. The departmental store is open seven days a week, with operating hours from 10:00 am to midnight and is located on the ground floor of the Avenues Mall, and visitors can easily access it via the mall’s entrances or parking lots.

Enjoy Delicious Cuisine at The Avenues Kuwait – Cafes, Fine & Bistro Dining

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

Cafes in The Avenues Kuwait:

  1. Starbucks in The Avenues Mall – Starbucks is a popular coffeehouse chain that serves a variety of coffee, tea, and snacks. The cosy atmosphere and delicious coffee make the cafe a popular spot for catching up with friends or taking a quick break.
  2. Caribou Coffee in The Avenues Mall – Caribou Coffee is another coffeehouse chain that sells coffee, tea, and bakery items. The cafe’s welcoming atmosphere and friendly service make it an ideal spot for a casual chat or a quick caffeine fix.
  3. Paul in The Avenues Mall – A variety of mouth-watering pastries, bread, and sandwiches are available in the French bakery and cafe known as Paul. The cafe is a wonderful choice for a relaxing breakfast or a mid-afternoon snack because of its exquisite decor and delectable food.

Fine Dining in The Avenues Kuwait:

  1. The Cheesecake Factory in The Avenues Mall – The Cheesecake Factory is a popular American restaurant that offers a range of pasta dishes, burgers, and, of course, cheesecakes. The restaurant’s elegant decor and attentive service make it a perfect place for a fine dining experience.
  2. P.F. Chang’s in The Avenues Mall – P.F. Chang’s is a Chinese restaurant that combines Chinese and American flavours. Signature dishes at the restaurant include Mongolian Beef and Chang’s Spicy Chicken.
  3. Le Pain Quotidien in The Avenues Mall – Le Pain Quotidien is a French bakery and café that sells organic bread, pastries, and sandwiches. The restaurant’s inviting atmosphere and tasty cuisine make it an excellent choice for a relaxed fine dining experience.

Bistro Dining in The Avenues Kuwait:

  1. Fauchon Cafe in The Avenues Mall – A variety of delightful French pastries, sandwiches, and salads are available at the Fauchon Café in France. The café is a great choice for a casual eating experience because of its stylish atmosphere and great food.
  2. Elevation Burger in The Avenues 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. Bouchon Bakery in The Avenues Mall – A variety of exquisite pastries, sandwiches, and salads are available at the bakery and cafe known as Bouchon Bakery. For a quick snack or casual dinner, the cafe’s welcoming ambiance and helpful staff make it a great choice.

Overall, the Avenues Mall in Kuwait is a must-see for anyone looking for a fun shopping and entertainment experience in Kuwait. It’s the ideal place to spend a day with its diverse retail, dining, and entertainment options. 

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By Estater

Key Factors to Consider for Maximizing Returns in Kuwait’s Real Estate Market

March 14, 2023 | Estater, Kuwait Real Estate | No Comments

Overview of the Kuwait Real Estate Market and its Investment Opportunities

For many investors, investing in Kuwait’s real estate is a lucrative option, but it comes with its fair share of risks. For maximising returns and optimize risks, it is essential to understand various important elements while investing in this market. Here are the macro drivers of real estate in Kuwait:

Oil Prices have Outsize Impact on Real Estate Returns in Kuwait

The oil price has direct impact on the macro-economic growth and on real estate returns. High oil prices like what is witnessed in 2022 and 2023 allow the Government to invest in infrastructure and creates demand for private sector. This results into employment growth and in turn pave ways for healthy returns from real estate.

High Disposable Income of Kuwaiti Families Create Solid Demand Base

Kuwait has one of the highest per capita incomes anywhere in the world. This creates a solid base for real estate demand across all sectors.

Availability of Vacant Lands in Kuwait is a Supply Side Constraint

While the overall size of Kuwait is substantial for its population size, the urbanized land (especially for commercial properties) remains in short supply. This shortage of land is a key reason for high real estate prices that is the most important factor governing the returns from real estate. The Government is mindful of this and has taken several steps to correct it in the last 10 years but a lot more is required before the shortage is fully addressed.

Political Instability Hampers Kuwaiti Government’s Ability to Undertake Bold Economic Reforms

The frequent political instability in Kuwait curtails the Government’s ability to initiate bold economic reforms in the country that can create long term growth potential. The private sector in the country is very enterprising and is capable of competing with global companies if it is given right policy environment. Private real estate companies have already done several landmark projects such as The Avenue Mall, 360 Mall, Al Hamra Tower, etc. that show they are capable to developing the best properties in the region.

No Tax on Income or Capital Appreciation in Kuwait

Unlike most countries in Europe, America or Asia, Kuwait does not have any income tax or wealth tax. This allows investors to enjoy tax free returns from real estate.

Despite many challenges, the Kuwaiti real estate sector offers promising returns to investors. Kuwait’s population has grown by around 5% per annum over the last 10 years; this growth has benefited Kuwait real estate market, making it one of the most lucrative markets in the Gulf region.

Key Factors to Consider When Investing in Kuwait Real Estate Market

It’s crucial to consider several factors when investing in Kuwait real estate. These include property location, supply and demand equation, potential rental yields and capital appreciation, legal and regulatory environment, etc.

You may make wise investment decisions and maximise your returns by doing thorough research and keep yourself up to date with the market conditions. If you’re considering investing in Kuwait real estate market, read on to understand how to maximize your returns:

Choosing a Right Location and Neighbourhood:

It is one thing to keep repeating the term “location” when considering real estate, it is another to define your objectives properly and pick a good “location”. The location of the property is essential since it can affect both the rental income and the capital appreciation. The type of property and its intended usage determine the right location. A residential property for self use need to satisfy your aspiration for social status and your daily places of commute. Another property for investment need to satisfy local market dynamics such as occupancy, prices and understanding of consumer profile. A thorough market research with comparison across several locations can help you make the right choice.

Always Estimate Rental Yield of Investment Properties:

The rental yield is one of the most crucial aspects to take into account when making real estate investments. This represents the expected rental income as a percentage of the property value. Rental yields underpin the value of all investment properties. It is important to benchmark the rental income of the subject property to the incomes of comparable properties nearby to avoid any miscalculations. At times, there are traps in the market where rental income for a property is far higher than what is available on comparable properties nearby. If such a property is bought at “unfairly high” valuation, it presents high risk of devaluation and potential losses. Rental returns in Kuwait vary according to the area, type of property, and several other considerations.

Long Term Capital Appreciation Potential of the Property:

The capital appreciation potential on a property depends on several factors such as the local physical & social infrastructure, status of the neighbourhood, accessibility to various places of interest, availability of vacant lands for new properties, etc. Detailed information on each of these factors is difficult to obtain for most consumers but Estater can help bridge this information gap easily. Information has been built up using cutting edge analysis of satellite images, yearly land development rates, type of road network in every neighbourhood, accessibility matrices for business districts, retail & entertainment, etc. Consumers can benefit tremendously from this information base and create a real estate portfolio that can generate substantial long term capital appreciation.

Real Estate Inventory Demand and Supply:

Knowing the current market dynamics of inventory, demand and supply of properties is critical when making investment decisions. Quality information can help you avoid making bad choices and reduce the risk of potential losses. Real Estate sector has traditionally suffered from lack of transparent data however, the situation is changing rapidly with several PropTech companies (such as Estater) now working to provide timely and quality information to real estate investors. Modern technology of artificial intelligence, data science, remote sensing and GIS applications allow dissemination of market information fast to its users.

Manage Your Property Financing To Avoid Pitfalls of Rising Interest Rates:

While investing in Kuwait’s real estate market, having a suitable financial plan is crucial. A suitable financing plan doesn’t mean high leverage…on the contrary it needs to be adjusted based on type of property. A rental income generating property has high ability to cover financing payments and thus, the leverage can be higher. On the contrary, a vacant land or self-use properties does not generate any income and thus, requires you to cover the financing from other income sources (such as employment or business). The world in 2023 has high inflation and high interest rates; in such conditions the property values often decline and thus, any short term investments for speculation can be very risky.

Maintaining & Managing the Property:

It is crucial to have a detailed property maintaining and management plan to increase its shelf life and improve its value. Investors should be aware of all expenditures related with property maintenance throughout its ownership period. These may include utility bills, facility management, cleaning, periodic repair and maintenance, etc.
Prior to purchasing a piece of land or a building, you should conduct due diligence to ensure that you understand what kind of maintenance is required. Having a property management systems in place from the start may go a long way towards ensuring everything goes smoothly.

Real Estate Legal and Regulatory Environment:

Before investing in real estate, it’s important to understand the legal and regulatory environment. Make sure you have a good understanding of the laws and regulations surrounding property ownership, rental agreements, management obligations, etc. There are many properties for which where freehold ownership is not available but these may offer excellent returns. Locations such as Shuwaikh Industrial, Freezone, etc. have commercial properties on 50 year lease from the Government. These properties are very high in demand and offer high rental yields.

How Estater Helps You on Maximizing Returns in Kuwait Real Estate Market?

Estater have detailed and comprehensive data on different real estate sector in Kuwait that can provide intricate details in these trends.

  1. Market insights: Inventory build-up and occupancy trends.
  2. Location analysis: Market gaps and retail 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 retail sector data with demographics of the areas, Estater can help businesses understand their target audience.

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.

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By Estater