Markaz: Rezoning, land reforms, new mortgage law and engaging private sector are among the key solutions

Markaz: Rezoning, land reforms, new mortgage law and engaging private sector are among the key solutions

Markaz puts forward solutions to address Kuwait’s housing crisis in new report

Kuwait: Kuwait Financial Centre “Markaz” released a new report, through its research arm (Marmore), on various challenges facing Kuwait’s residential real estate sector that stem from a long-standing housing crisis. Titled ‘Housing Problem in Kuwait and the Way Forward’, the report also includes recommendations to solve the widening supply-demand gap in the state housing program and address the growing demand for housing mainly driven by a youthful demographic and fast-paced urbanization in the country.

The report pointed out that Kuwait has been catering to the housing needs of its citizens through a state housing program. The Public Authority for Housing Welfare (PAHW) provides Kuwaiti citizens with either a house or a land plot and a long-term interest-free loan by the Kuwait Credit Bank (KCB) of KWD 70,000. However, the supply of housing units does not keep pace with the demand, with the number of housing applications pending action at PAHW reaching 91,794, as of 2020, and stretching waiting times between application and allocation almost 10 years. The supply shortfall has also pushed up the prices for private housing, reducing the affordability of owning private residences.

Furthermore, the Markaz report notes that