Real Estate Owners Union offered up a suggestion to the prime minister that expats could be allowed to own apartments in Kuwait. The union sources went on to specify that the ownership will not be accompanied by any benefits enjoyed by Kuwaitis such as citizenship or any other privileges. The source mentioned that the practice had been incorporated in some neighboring GCC states.
The sources further highlighted the possible positive outcome of the decision on various sectors, saying that it will create more job opportunities for Kuwaiti youth and add value to Kuwait’s economy. The idea underlined was a potential sale of 1,000 apartments to expats annually at a total value of KD 100 million, with the approval of legislators, who could outline proper conditions for such ownerships.
Meanwhile media reports have indicated that some building owners in Salmiya and Hawally areas have reduced the rents of two bedroom flats to below KD 300 for the first time in several years.
They also added the rent of three-bedroom flats also dropped to KD 400 and below in areas like Fintas. They added that marketing of investment flats became so difficult that some real estate agents decided to relinquish their commission in order to manage the buildings.
The return on investment on real estate building have gone down considerably forcing small investors to exit and sell off to larger investment firms. The era for quick gains is over for now and investment companies are looking for market stability.