BusinessKuwaitOther News

Seaside restaurant complexes: Growing real estate investment

kuwaitKUWAIT: A total of nine food restaurants’ complexes overlooking seashores of the country reflects remarkable growth of this sector in the few recent years-starting from Al-Kout Mall in Al-Fahaheel city to Kuwait Towers at the Gulf Street.

Half of these complexes of various designs were built three years ago only. Many reasons are forcing real estate investors to finance such projects, regarding that tourism in Kuwait is of seasonal nature, which negatively affects revenues.

Such a phenomenon could be viewed “as a seasonal one or as a natural development in the realty commercial sector.” The complexes offer consumers various choices of several and different restaurants and cafes, all situated in a single location overlooking the sea.

Real-estate experts in interviews with KUNA said continuous success in the restaurants’ sector is considered the main reason behind this phenomenon. Another cause is shortage of entertainment and cultural places in the country.

Two million a day
Consumers spend KD 700 million, of average of two million daily, in the restaurant sector in Kuwait-of a total of 5,000 restaurants visited by 615, 000 people on a daily basis, they said. Director General of ‘Daam’ Real Estate Development Company Gazal Al-Mufti, owner of the first project in Kuwait of such restaurant complexes, said they offer comfortable accommodation for socializing and family gatherings.

The restaurant sector is considered as the most successful in Kuwait and the Gulf region, as 10 percent of the Kuwaiti people visit the restaurants daily, according to recent statistics, she added. This sector in Kuwait reached the value of KD 1.5 billion in 2012, which increased to KD 2.2 billion in 2014, with an annual growth of 15 percent, thus reflecting its importance and vitality, she said.

Managers at these complexes are now working on new food concepts; merging between a numbers of cuisines to create food fusion, she mentioned. Director of Al-Dlaijan real estate office Slaiman Al-Dlaijan said that the strong purchasing power of the Kuwaiti people contributes to encouraging the business. – KUNA

Back to top button