New real estate valuation rules to improve property price accuracy in Kuwait
The Ministry of Justice has introduced new regulations for the profession of “expert in knowledge” that are expected to bring greater accuracy and transparency to real estate valuations and have a direct impact on property prices in Kuwait.
Under the new decision, real estate appraisal reports will be prepared according to professional standards and scientific methods, helping ensure that property values reflect actual market conditions.
Undersecretary of the Ministry of Justice Awatif Al-Sanad said the regulations will improve the quality of valuation reports by requiring experts to provide detailed assessments and follow 18 basic conditions when preparing real estate reports.
She explained that Minister of Justice Counselor Nasser Al-Sumait issued Decision No. 585 on July 23 to regulate the profession of expertise experts, based on Article 29 of Law No. 40 of 1980 concerning the General Administration of Experts.
The decision followed the work of a specialized committee formed to review previous regulations and establish clear requirements and controls for the profession. The committee included officials from the Ministry of Justice as well as representatives from the private sector.
Digital Link to Property Transactions
Al-Sanad said the new system will support the digital transformation of real estate valuation by linking appraisal reports with property registration transactions.
This will allow authorities to determine the actual market value of properties during transactions and improve the accuracy of electronic technical reports.
She added that the impact will also extend to court cases involving real estate disputes, as experts from the General Administration of Experts will rely on professional property valuation reports when preparing their assessments.
New Requirements for Experts
The decision sets three main conditions for those seeking to work as an expert in real estate valuation:
- Must hold Kuwaiti nationality.
- Must be at least 30 years old.
- Must be registered with the Ministry of Commerce as a licensed real estate appraiser.
Al-Sanad noted that real estate brokers and intermediaries will no longer be eligible to apply for the profession unless they meet the official requirements and are registered as property appraisers.
Currently, 73 Category C real estate appraisers are registered with the Ministry of Commerce.
Real Estate Appraisal as a Specialized Profession
Al-Sanad emphasized that real estate valuation is a scientific field taught at universities and differs from the role of a real estate broker.
While brokers focus on marketing properties and facilitating transactions between buyers and sellers, professional appraisers determine market value based on factors such as location, financial conditions, development plans, and other elements affecting property prices.
Professional Obligations
The new regulations also require experts to follow strict professional standards, including:
- Protecting confidential information.
- Not disclosing data obtained during their work.
- Declaring any potential conflict of interest.
- Withdrawing from valuation assignments if a conflict arises.
The Ministry of Justice said the new framework is designed to strengthen the reliability of property valuations, support fair market practices, and improve the accuracy of real estate-related decisions in Kuwait.
