Kuwait’s residential real estate market faces a decline

Kuwait’s residential real estate market faces a decline

KUWAIT CITY, April 15: According to the Kuwait International Bank (KIB) report, the residential real estate market in Kuwait experienced a notable decline in 2023. The number of real estate transactions dropped to 3,039, with a total worth of 1.2 billion dinars. This marks a significant decrease of 30.3% compared to 2022, which saw 4,362 …KUWAIT CITY, April 15: According to the Kuwait International Bank (KIB) report, the residential real estate market in Kuwait experienced a notable decline in 2023. The number of real estate transactions dropped to 3,039, with a total worth of 1.2 billion dinars. This marks a significant decrease of 30.3% compared to 2022, which saw 4,362 transactions valued at 1.9 billion dinars, as per Ministry of Justice real estate registration statistics, reports Al-Qabas daily. The report identified several factors contributing to this decline. One prominent reason was the increase in the Central Bank’s discount rate, leading to reduced economic feasibility in investing in income-generating residential properties and higher financing costs for construction, particularly due to rising labor wages.

Moreover, upcoming laws in Kuwait are expected to shift focus from the residential sector to other areas, aiming to liberate land and prevent land monopoly. Measures include abolishing