Nomad Capitalist, a company specializing in advisory services for investors and entrepreneurs, has released the Global Real Estate Investment Return Index, which ranks the Kuwaiti real estate market 75th globally.
The index reveals that the rent for a one-bedroom apartment in Kuwait’s city center or main suburbs is $930, while the price per square meter for buying an apartment in the city center is $7,087. This makes Kuwait’s real estate market the most expensive among Gulf countries. In comparison, the price per square meter in the Emirates is $3,924, Qatar $4,730, Saudi Arabia $1,692, and Oman $2,081.
Despite its high prices, Kuwait’s return on real estate investment trails behind its Gulf counterparts. The United Arab Emirates takes the top spot globally in the Nomad Index, followed by Saudi Arabia at 9th, Qatar and Oman both at 11th.
The Nomad Return on Real Estate Index evaluates real estate markets in 103 countries, including developed and developing markets, to assess the true value of international real estate. It uses a percentage-based approach to measure the performance of each market based on five key factors: price-to-income ratio (25%), net rental income (37.5%), ability to afford loans (12.5%), purchase cost, real estate, and subsequent sale (12.5%), and tax on rental income (12.5%).
By assessing these factors, the index provides valuable insights into the performance and value of different real estate markets worldwide.