Middle East

Kuwait’s residential real estate market faces a decline

Moreover, the upcoming laws in Kuwait are expected to shift the focus from the residential sector to other areas, with the aim of liberating land and preventing its monopoly. The measures include abolishing the real estate agency, imposing annual fees on large land holdings, and imposing utility fees on owners of multiple residential properties. These factors are expected to redirect capital towards the investment sector, especially in operational investment housing, thus increasing supply and reducing demand in the residential sector. As a result, residential real estate prices witnessed a decline of 12% – 15% compared to 2022, especially in areas far from the Capital Governorate.

However, areas close to the capital witnessed a slight decline in prices, with the exception of distinguished locations where prices remained relatively stable. With regard to private residential real estate, transactions decreased significantly in Al-Ahmadi Governorate, especially in the Sabah Al-Ahmad Marine area, which witnessed a decline due to lower investment returns after conditions returned to normal after the pandemic. In conclusion, the decline in residential real estate transactions indicates a similar decline in prices, while transactions in other real estate sectors also saw a decline.

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  • Source of information and images “arabtimesonline

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