Five real estate agents are said to be controlling rent through 18 affiliated offices.
The agents often issue unrealistic reports that do not reflect the true status of the country’s real estate sector. They noted those five real estate agents are in serious crisis due to lack of ability to pay back loans estimated at KD 3 billion to banks, indicating loans they obtained from banks constitute 3.9 percent of the total debts.
Other 122 real estate agents are also drowned in debts estimated at KD 8 billion because the skyscrapers/ towers they have built remain vacant on the account of high rental fees they charge, which is unrealistic in the market, coupled with failure to conduct adequate study of the real estate market.
The major real estate companies have embarked on campaign to stimulate the deteriorating rental prices that hit the sector since the second half of 2015, ranging between 20 and 45 percent. They reiterated about 120,000 flats in Kuwait are vacant and the number is expected to rise by the end of 2016, while rental fees will further deteriorate in the coming period.
Source: Arab Times