Kuwait’s real estate has been continued the expansion and diversification with progress being made on a series of new mixed-use and entertainment-focused developments.
In mid-May, the Kuwait Authority for Partnership Projects announced it had shortlisted six local developers and consortia to submit proposals for the construction of an entertainment and commercial centre in Kuwait’s real estate. This will be located in the district of Egaila, just south of Kuwait City.
The project, which will be part of a 30-year public-private partnership deal, consists of an 85,500 sq metre entertainment, cultural, commercial and sports venue.
The complex has a gross leasable area of 65,500 sq metres and includes a 20,000 sq metre fresh food market and a 2680-unit car park. The successful bidder is expected to be announced in the fourth quarter of this year.
Other projects under development in Kuwait’s real estate include the 380,900 sq metre Assima mixed-use project in Kuwait City.
Owned by local firm Salhia Real Estate Company, the project consists of three main sections: the Assima Mall, which will feature 72,000 sq metres of retail space; the 54-storey Assima Tower, with more than 150 offices; and the Assima Residence, a set of 170 high-end apartments to be developed by Mariott.
The shopping mall, of which 62% of the retail space had been leased by late February is expected to open for business in February 2020. The apartments will follow six months later and the office space in early 2021.
Another addition to Kuwait’s real estate leisure options will be the KD250m ($823.2m) Al Khiran project, being developed by the Tamdeen Group.
Located in Sabah Al Ahmad Sea City in the south of Kuwait, the 116,000 sq metre project incorporates the country’s largest marina as well as a mall, entertainment facilities, a five-star hotel and commercial office space.
The project will also support the planned development of substantial new residential stock, with homes for some 150,000 people to be constructed in the Sea City area.
The development of real estate projects with a strong focus on entertainment and leisure is a key aspect of the government’s overarching economic strategy.
The flagship Northern Gulf Gateway development project, unveiled in March last year, aims to add $220bn to Kuwait’s GDP by 2035 through the development of the non-oil sector. Officials pointed to the tourism, hospitality and leisure sectors, among others, as having significant growth potential.