Residential Real Estate in Kuwait: Deals to Continue to Decline in 2024

The reasons for the continued decline in trading in the real estate market are the displacement of funds from various real estate sectors to deposits in banks with high interest rates, and due to the large gap between supply and demand prices, those wishing to buy in the real estate sector were reluctant, especially in light of the consequences of the severe price inflation that hit the market.

Official data showed a great purchasing demand for commercial real estate in Kuwait, as the sector’s trading witnessed a jump of about 76.57% to 312.25 million dinars on 50 properties during the first 5 months of 2024, to 312.25 million dinars on 50 properties, compared to its level in the comparative period of 2023, when it reached 176.84 million dinars. It also constitutes 73.5% of the total private real estate trading during the entire year of 2023, which reached 425.144 million.

The lion's share of real estate transactions was for the private real estate sector, which acquired 1,277 properties worth 583 million, representing about 44.46% of total transactions, down by about 17 million from the comparative period of 2023.

Investment sector transactions amounted to about 347.622 million dinars, executed on 427 properties, representing 26.5% of total transactions, down by about 13% from its level in the comparative period last year when it reached 399.5 million.

The transactions were distributed across the six governorates, with private real estate at the forefront, with 295 properties worth 134.81 million, investment real estate with 103 properties with a total value of 71.73 million, followed by commercial real estate with 164.53 million on 20 properties.

The data showed that 3 properties were registered in the crafts sector at 3.77 million dinars, a property in the exhibitions sector at 1.85 million, in addition to a property in the warehouses sector at 4.3 million, and a property in the coastal strip at 32 million.

Al-Ahmadi Governorate had the largest number of real estate deals with about 157 properties, while Jahra Governorate had the least with only 22 deals.

At the level of the first 5 months of this year, last May was the highest in terms of the value of real estate transactions at about 412.98 million dinars, followed by March 2024 at 278 million dinars, then January at 268.16 million, then April at 177 million, and then February at 175.18 million.