KUWAIT CITY: Kuwait is currently undertaking several large-scale housing projects aimed at addressing the growing demand for residential units, and it includes Al-Multaa City, South Saad Al-Abdullah City, and South Sabah Al-Ahmad City. Those major projects were set to provide housing for thousands of citizens and offer significant opportunities for foreign companies to contribute, particularly in the fields of infrastructure and construction. Al-Mutlaa City is one of three major housing projects currently being executed by the Public Authority for Housing Welfare (PAHW), with a projected population of 400,000, the pace of infrastructure completion was accelerating in two other major projects: South Saad Al-Abdullah City and South Sabah Al-Ahmad City.In September, the PAHW signed a…

KUWAIT CITY: In a recent Financial Stability Report, the Central Bank of Kuwait revealed concerning trends in the local real estate sector for 2023, reports Al-Seyassah daily. The report highlighted that this year marked the lowest average value of real estate transactions in the past five years. The report detailed a significant decline in both the value and total number of transactions, attributing this downturn to a gradual increase in local interest rates that began in early 2022. The value of real estate transactions plummeted by approximately 28 percent, dropping to 2.74 billion dinars, well below the average of previous years. Furthermore, the growth rate of residential real estate prices also faltered, with the average price growth across the six governorates dwindling to about…

KUWAIT CITY: Imad Haidar, the head of the Real Estate Brokers Association, recently shared insights into the challenges facing Kuwait’s residential real estate sector. He noted a slowdown in demand that began at the start of last year, attributing this decline to several key factors, including rising interest rates on deposits, peak residential property prices, and the implementation of new regulations that have psychologically impacted market participants. According to Haidar, the residential real estate market has experienced an average decline of 25 percent since the beginning of 2023, with the most significant drops occurring in outer areas that had previously seen speculative surges in prices. He pointed out that declines vary by region, with some areas experiencing reductions…

KUWAIT CITY - A Professor of Economics at Kuwait University and a researcher in urban economics and housing Dr. Dhari Al- Rasheed highlighted the importance of the real estate sector in the country. It accounts for approximately nine percent of Kuwait’s GDP. Housing expenses consume between a third and half of the average household budget. He stressed the need to reassess various housing and real estate issues, especially with the state’s near-total control over private housing provision through the housing care program, which has limited the private sector’s involvement in real estate development. Moreover, Dr. Al-Rasheed raised concerns about the limited housing options and the constraints imposed on supply by the laws and regulations related to building and…

Kuwait - In the first half of 2024, real estate companies listed on the Boursa Kuwait collectively reported operating revenues of 239 million dinars, marking a 3.4 percent increase from 231 million dinars in the same period of 2023.   This rise represents a gain of 79.1 million dinars compared to the previous year. The top performers include the Mabanee Company which led the sector with the highest operating revenues, reaching 66 million dinars, up from 61.8 million dinars. The United Real Estate Company followed with revenues of 40.2 million dinars, a decrease from 43 million dinars and the Salhia Real Estate Company secured third place with revenues of 22.2 million dinars, an increase from 20 million dinars. As for the Kuwait Real Estate Company, it earned 15.8 million dinars,…

After more than six years of addressing the real estate fraud crisis and significant progress made by the government from 2017 to 2022 to eliminate this phenomenon, real estate fraud cases are once again resurfacing, particularly through real estate brokerage. Recent activity on social media has revealed many cases of real estate fraud, with some individuals impersonating real estate brokers to carry out deceptive operations under the guise of accredited real estate offices. To understand the reasons behind the resurgence of real estate fraud in brokerage and explore the potential solutions, Al-Seyassah met with several real estate brokers.       They stressed the need to tighten control over unauthorized individuals in the profession, enhance societal awareness of real…

According to a report by Al-Shall Center, the total number of buildings in Kuwait reached approximately 219,600 by the end of June 2024, up from about 216,300 at the end of June 2023, reports Al-Seyassah daily. This represents a growth rate of around 1.5 percent over the past year, slightly lower than the 1.6 percent growth recorded during the previous year.     The report also highlighted that the number of building units increased to about 786,800 by the end of June 2024, compared to 778,200 units a year earlier, marking a 1.2 percent increase. The compound annual growth rate for units from June 2015 to June 2024 was about 1.9 percent, while the compound growth rate for buildings was 1.2 percent. This suggests a trend toward smaller unit sizes within buildings and a shift…

According to statistics issued by the Real Estate Brokers Union concerning real estate transactions in July, there was an increase in the value of real estate transactions by 22 percent and the number of properties by 46 percent in July compared to June. The total value of real estate transactions in July was about KD 385.5 million compared to KD 316.4 million in June. The number of properties in July was 472 compared to 323 properties in June. The statistics showed that the residential sector led in both the value and number of real estate transactions, comprising 39 percent of the total trading value and 71 percent of the total number of properties. The investment sector ranked second with 30 percent in trading value and 24 percent in property numbers. The commercial sector secured…

Kuwait International Bank (KIB), represented by its Real Estate Department, recently delivered its second specialized workshop on the fundamentals of investment and real estate appraisal at Kuwait University's (KU) College of Business Administration. This initiative comes as part of KIB’s support of the “Let’s Be Aware” (Diraya) awareness campaign and the Bank's mission to transfer knowledge and expertise to a wide range of students, whom KIB views as promising future assets. Additionally, this effort is part of implementing its memorandum of understanding with KU to integrate practical studies into the university’s academic curriculum. This important event saw the participation of Real Estate Expert Eng. Hussam Al-Kolak and Real Estate Advisor Arch. Basil…

The real estate market in the country demonstrated a seven percent growth in the first half of this year compared to the second half of last year. from January to June 2024, the total value of real estate contracts registered with the Ministry of Justice amounted to approximately 1.619 billion dinars, marking an increase of 112 million dinars from the 1.507 billion dinars registered in the second half of 2023. Despite the overall growth in total contract value, there was a notable decline in various types of real estate transactions, except for exhibitions and warehouses.     The first half of the year saw the registration of 4 exhibition contracts totaling 10.8 million dinars, and warehouse contracts increased by 55.5 percent in number, with 9 contracts compared to 4 in the…

Kuwait real estate developer Mabanee has entered into a deal with a local bank to raise its credit facility from 25 million dinars ($81.5 million) to 45 million dinars ($146.7 million), according to a company disclosure on the Kuwait stock exchange (Boursa Kuwait).    The deal has been inked with a local bank for a period of 11 months. Mabanee said the purpose of this facility is for financing the company’s activities. In December, Mabanee broke ground for its $1 billion project, The Avenues Khobar Mall, in Saudi Arabia located in the Eastern Khobar city. Phase 1 of the project will include a shopping mall and a mixed-use tower, which is expected to be completed by 2026. The Kuwaiti developer also announced a deal last October to purchase a vacant plot in Bahrain…

Kuwait's Public Authority for Housing Welfare (PAHW) has annnounced that work is moving at a steady pace on its ambitious project - Sabah Al Ahmad City - mainly the south and east sectors of the project, with power connection given to 40 of the total 60 buildings within the mega development.   The PAHW authorities are currently focusing on developments in the south and east sectors, as well as a vertical housing initiative in the investment suburb. This phase of the project aims to create 20,380 plots, stated PAHW in its statement. The officials said the East Sabah Al Ahmad City project, which involves the development of 1,148 homes alongside public buildings, road infrastructure, and service networks, was also reviewed. A 61.5 sq-km development, Sabah Al Ahmad City, was formed…