Kuwaiti real estate market takes another hit to the rental sector as a number of top brand agencies in Kuwait plan to vacate rented sites. These agencies are from different sectors such as textile, perfumes, accessories and restaurant sectors.
Several agencies of well-known brands have announced their intention to leave the commercial properties they rented by the end of March. They have even sent letters informing the commercial complexes in which they rent.
The rented properties which will be vacant are particularly spacious. In some cases, the soon-to-be vacant properties spread over an area of 1000 square meters. This will further negatively impact the already suffering real estate sector this year.
The commercial complexes have started advertising the properties, but re-renting these sites may not be an easy endeavor due to the current troubling conditions facing the real estate sector.
Qais Al-Ghanem, Secretary of Real Estate Union stated that several companies have recently reduced the number of their branches as well as the number of employees due to fall in rate of consumerism in the society.
Al-Ghanem reiterated that market conditions have recently changed and companies are probably re-evaluating their presence in different areas. He stated that many of them decided to close down branches that are not making profits anymore.