Real estate transactions decline by 21.1% in Kuwait

While commercial real estate transactions recorded 514 million dinars, a decrease of 15%, constituting approximately 16.5% of the total transactions. The craft sector, trade fairs, and industrial plots witnessed a significant decline to about 84 million dinars, a 51.8% decrease compared to 2022. However, the coastal strip sector witnessed a noticeable increase, reaching 140 million dinars, more than four times its value. In 2022, it will contribute 4.5% of total transactions. The report also indicated a decline in real estate demand in 2023, which is evident from a decrease in the number of deals by 28.5%, bringing the total to 4,443 deals. This decline was observed in various sectors, with the exception of the coastal strip, which witnessed an increase. However, the contribution of the coastal sector to total transactions remained insignificant.

Private housing transactions decreased to 3,114 deals, a decrease of 31.5% from the previous year, while investment deals amounted to 1,149 deals, a decrease of 17.3%. The total commercial sector deals reached 118 deals, a decrease of 26.7% compared to 2022. Private housing prices witnessed a modest decline of 1% at the end of the fourth quarter of 2023, recording the second annual decline in five years. Investment real estate prices increased by 1%, while commercial real estate prices increased by 2.8% during the same period. Prices of chalet spaces remained stable, while prices in Al Khor areas witnessed slight declines. Residential prices varied between regions, as their decline was observed in some areas of the Capital and Hawalli Governorates.

The average price per square meter of apartment ownership in investment properties remained stable in most governorates, while rental values increased slightly by 1.7% annually. The average rental value of private housing witnessed a slight decrease of 0.2% annually. In the Capital Governorate, the average price per square meter for private housing decreased to 1,408 dinars, while the price of investment property reached 2,397 dinars. In Hawalli Governorate, private housing prices fell to 1,167 dinars, while investment real estate prices rose to 1,685 dinars. Farwaniya Governorate witnessed private housing prices averaging 775 dinars, while investment property prices reached 1,500 dinars.

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