Interview: Abdulaziz Ghazi Alnafisi, CEO, Salhia Real Estate Company, on the rebound in commercial and high-end residential trends
How has the projected rebound in commercial real estate occupancy rates in Kuwait City influenced investment and development strategies?
ABDULAZIZ GHAZI ALNAFISI: There is a broader return of confidence to the market: tenants are re-engaging, businesses are expanding their physical footprints again and long-term leases are once more on the table. This kind of shift in sentiment has given real estate developers the assurance needed to pursue larger and more ambitious projects. We are seeing greater movement in mixed-use development plans, increased activity around financing for land acquisitions and a willingness to reinvest in both new builds and the revitalisation of ageing properties. The numbers suggest that the fundamentals are strong – creating space for developers to think strategically, take calculated risks and align their portfolios with the renewed momentum of the city’s urban core.
To what extent is demand for mixed-use development reshaping urban planning and commercial real estate trends, particularly in city centres?
ALNAFISI: Today’s urban visitor expects more than just isolated destinations – they are looking for seamless environments where working, shopping and socialising are all interconnected. This shift in demand directly influences how urban planning is approached, especially in city centres where land use needs to be both efficient and dynamic. Developers are responding to this trend by designing projects that combine commercial, hospitality and leisure elements in a way that maximises both utility and experience. These types of developments help bring a constant energy to the area, driving activity throughout the day and further into the evening rather than being limited to a single-use function.
From an investment standpoint, they also offer greater resilience: when you diversify usage within a single footprint, you create more balanced and adaptable returns over time. It is becoming clear that mixed-use is not just a trend, but it is steadily becoming the standard for what successful and sustainable urban development will look like in Kuwait’s future.
In which ways has the growth of e-commerce influenced the demand for traditional retail spaces?
ALNAFISI: Rather than displacing traditional retail, e-commerce has reshaped it. Brick-and-mortar spaces are no longer just about transactions – they are becoming destinations. What customers now look for is a fuller experience: places where they can spend time, connect and engage socially. This shift is encouraging developers to rethink how retail environments are designed and programmed. Cinemas, fitness centres and diversified food and beverage offerings are being integrated into commercial spaces to draw consistent foot traffic and extend dwell times. There has been a noticeable increase in leasing interest from tenants focused on experiential retail or lifestyle services – those that complement, rather than compete with, e-commerce. Large malls within mixed-use environments have the opportunity to create a full range of experiences.
What impact has the shift towards high-end residential properties with high-end amenities had on new housing supply and pricing?
ALNAFISI: People are no longer just looking for a place to live – they are seeking environments that enhance their daily lives, whether through access to wellness facilities or integrated retail and dining options. This shift has pushed developers to recalibrate their offerings, placing greater emphasis on quality and differentiation rather than volume. As a result, new supply is increasingly concentrated in the upper tier of the market, aligning with the expectations of a younger, more globally exposed urban population that values both design and convenience.
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