Investment Guidelines for Selecting Real Estate Projects in the State of Kuwait

يعتبر أهم أهداف هذه الدراسة هو بناء نموذج اقتصادي قياسي يخدم قياس وشرح وتنبؤ بحجم الطلب والعرض وتحديد أهم المتغيرات التي تحدد قيم وأسعار العقار في الكويت وكذلك التعرف على أفضل الأساليب الرياضية والمحاسبية والاقتصادية المناسبة لاختيار وتقويم القرارات الاستثمارية العقارية في الكويت وذلك في سياق إعداد دليل اقتصادي استثماري لاتخاذ القرارات الاستثمارية في سوق العقار في الكويت .

There are over 200 detrimental conditions (DCS) that can affect real estate values. They include temporary easements, airport noise, construction defects, serious toxic waste, geotechnical issues, social, psychological and religious factors and natural disasters. Determining the diminution in property value brought about by a DC requires the application of specialized methods, procedures, and formulas. All DCS can be classified into ten categories, each having unique patterns and attributes that can be illustrated on a graph. The appraisal of real estate requires statistical, mathematical and econometric models or techniques such as internal rate of return, net present value, accounting economic or social rate of return, the nearest neighbors technique, linear programming and so forth. Determining the main factors affecting the value of real estate and constructing an econometric model to determine the value, price, supply and demand of different types of real estate is necessary and essential to understand, explain and predict the variables and structure of the real estate market in Kuwait and to provide an understanding to the decision-makers in the real estate market. The outcomes of this study would provide guidelines for investment decisions in real estate in Kuwait.