Kuwait City second most expensive Arab City for apartments
Kuwait City ranked second among the most expensive Arab cities for purchasing residential apartments in 2026, according to the latest Numbeo index, despite a noticeable year-on-year decline in prices.
The report showed that the average price per square meter for apartments in the city center reached KD1,633, reflecting a decrease of 10.9 percent compared to 2025, when prices stood at approximately KD1,833 per square meter.Outside the city center, prices fell by 11.3 percent to KD816.7 per square meter, down from about KD921 a year earlier.
With regard to rental rates, data from a specialized real estate price index indicated that the average monthly rent for a one-bedroom apartment in the city center stands at KD258.33, compared to KD188.5 dinars outside the central areas. For three-bedroom apartments, rents average KD560.13 dinars per month in the city center and KD405.55 dinars in areas outside the center.
Kuwait’s position as the second most expensive Arab city is attributed to a combination of structural and economic factors, most notably the limited supply of housing in central areas relative to steady demand. Demand remains particularly strong for apartments located near business districts and service hubs, while high land prices in the city center continue to support elevated real estate values.
The rental data also reflects the resilience of demand in the Kuwaiti market, as central locations remain attractive to middle- and upper-income residents despite high costs. At the same time, the widening price gap between city-center properties and those in surrounding areas points to a growing shift toward suburban and outlying regions as more affordable alternatives, a trend expected to stimulate real estate activity in those areas in the coming period.
Regionally, Dubai topped the list by a wide margin, with apartment prices in the city center reaching US$7,172 per square meter, making it the most expensive Arab city for residential real estate investment.
Abu Dhabi ranked third at $4,923 per square meter, followed by Doha at $4,506, Baghdad at $3,834, and Beirut at $3,753. Riyadh came in seventh at $2,927, followed by Muscat at $2,661 and Manama at $2,627.
According to Numbeo data, Algiers ranked tenth at $2,297 per square meter, while Damascus, Rabat, Jeddah, Amman, and Tunis occupied middle positions. At the lower end of the scale, Aden recorded the lowest apartment prices among Arab cities at $90 per square meter, while prices reached $854 in Cairo and $722 in Alexandria.
The report highlights the wide disparity in real estate prices across Arab cities, driven by varying levels of economic stability, housing demand, and the quality of infrastructure, particularly in Gulf markets.
