Expert warns of negative effect of visa restrictions on real estate

Expert warns of negative effect of visa restrictions on real estate

By Majd Othman

KUWAIT: Since the onset of the COVID-19 pandemic in 2020, Kuwait has implemented stringent visa regulations for expatriates as a precautionary measure to curb the spread of the disease. These regulations include restrictions on expatriates sponsoring family visas for their first-degree relatives and impediments for small businesses in recruiting foreign workers from specific countries due to visa restrictions. These laws have adversely affected various business sectors in the country, particularly the real estate investment sector.

Real estate expert Sulaiman Al-Dilaijan, in an interview with Kuwait Times, explained that there has been a recent 12 to 15 percent decrease in demand for rented apartments in the investment real estate sector by expatriate families. Additionally, the value of rented apartments has declined by 10 to 15 percent. The most impacted segment within this sector is single housing apartments, primarily housing laborers without families who have come to Kuwait to work for companies that do not provide housing (apart from governmental projects).

These laborers’ presence has affected demand in specific areas due to the strict visa regulations, leading to the deportation of many existing single laborers and discouraging others from working in the country due to the stringent laws. Dilaijan warned that if