The second edition of the Dimah Capital Real Estate Forum, titled "Economic Outlook 2024," was launched by Dimah Capital Investment Company at the Al-Bidaa Hall, Four Seasons Hotel Kuwait, with a global attendance of elite specialists and investors.

The forum was inaugurated by Sheikh Khaled Salman Al-Sabah, Vice Chairman of Dimah Capital Investment Company, who explained that the forum aims to explore the future of real estate on a global scale, as well as to identify the latest economic trends affecting real estate markets in the United States, the United Kingdom, and Europe.

Al-Sabah added that the forum includes several discussions on global economic expectations in Europe, the United Kingdom, and the United States, and explores insights into multifamily housing markets, capital markets, and financing markets, with the aim of providing attendees with the knowledge and tools necessary for strategic decision-making in the evolving real estate sector.

Regarding Dimah Capital’s role in enhancing innovation and thought leadership within the sector, Al-Sabah affirmed that the company has a strong presence through its subsidiaries and a capable team that seizes investment opportunities, structures them in compliance with Shariah law, and achieves the expected returns for investors.

In the same context, Dr. Dennis Schoenmaker, Executive Director at CBRE, delivered a presentation at the forum that reviewed the state of the global economy and future expectations.

Additionally, Alex Fouche, Head of International Capital Markets Group at Newmark in the United States, presented global financial market indicators.

The forum's program also included an initial panel discussion attended by a global team of experts and economists, which highlighted the U.S. real estate market. The speakers discussed key real estate aspects and the future of real estate investment in the U.S. market.

Concerning the current state of debt in the United States and its development, Alex Fouche confirmed that the situation is significantly improving, citing a reduction in loans by 42% between 2022 and 2023.

Regarding the impact of multifamily housing units, Christine Espenshade, Vice President of Multifamily Capital Markets at Newmark, explained that several factors control the real estate landscape, including rent growth, new migration patterns, and low-interest rates, which have led to increased supply in the multifamily real estate market. She confirmed that the United States is heading towards doubling the number of available units by delivering 600,000 units during 2024.

John Gaghan, CEO of APEX US (a subsidiary of Dimah Capital in the United States), spoke about the assets that could achieve the best financial returns in the coming year. He explained that the multifamily real estate sector and net lease assets are the best solutions for investors due to the continuous cash flow they offer. Regarding market competition, John clarified that competition for deals has increased, and the number of opportunities has decreased compared to the past few years.

The second panel discussion touched on the future of the real estate market in the United Kingdom and Europe and the main challenges they face.

Regarding the dominant investment strategies in the United Kingdom and Europe and capital trends during the upcoming period, Nick Krebs, Head of Capital Markets in the UK at Panattoni, explained that 2023 was characterized by capital stillness and a focus only on price discovery. With the beginning of 2024, signs of market recovery started to appear. Krebs added that current capital flows are leaning towards value-added and core strategies, as well as purchasing high-quality assets with potential for improvement.

Andrew Yeandle, CEO of APEX UK (a subsidiary of Dimah Capital in the United Kingdom), confirmed that evolving strategies affect investors’ opportunities. Andrew pointed out the return of confidence in real estate investments since the beginning of this year.

Concerning the future of the British real estate market and key economic expectations, Dr. Dennis Schoenmaker affirmed that the potential decision to cut interest rates would set the real scenario for European real estate markets. He also noted the strength of the current real estate market and its ability to return to normal levels.

In response to a question about the significant decline in investment volume in the United Kingdom and Europe over the past 24 months, Alex Fouche clarified that investment volume decreased to $125 billion by the end of last year due to inflation that exceeded 8% during that period, as well as a drop in demand. Fouche added that at the beginning of this year, many companies began returning to the market, confirming an increase in institutional activity during the second half of this year.

In conclusion, Waleed Mohammed, Acting CEO of Dimah Capital, confirmed that the forum aims to provide attendees with valuable insights and experience to help them navigate the ever-evolving real estate market and make informed decisions. He added that Dimah Capital remains committed to delivering innovative and responsible investment solutions in line with its strategic vision and plans to expand into new regions.