Can Kuwait break the housing gridlock in the midst of outdated laws, costly land, missed opportunities

At the launch of the Third Gulf Housing Week at the Grand Hyatt Hotel under the theme “Real Estate Development for Sustainable Housing,” top Kuwaiti and Gulf personalities have stressed the urgent need to reshape Kuwait’s housing strategy to meet citizen demand and unlock the private sector’s potential.

Minister of State for Municipal Affairs and Housing Affairs, Abdullatif Al-Mishari, emphasized the scale of the housing crisis, noting over 100,000 families are on waiting lists, reports Al-Rai daily.

He underscored the necessity for housing units that are not only suitable for citizens but also offer the private sector the flexibility to sell and develop. He called for an open real estate market supported by a dedicated legislative and regulatory climate, including a new real estate finance law and a structured land management system akin to Qatar’s Real Estate Department.

In the opening panel, Mohammed Al-Shaya, Executive Chairman of Mohammed Hamoud Al-Shaya Company, criticized the unattractive investment climate, noting that Kuwaiti laws are outdated, citing the short 25-year contract term compared to the 50-year minimum in the U.S. He pushed for legal reforms to allow long-term investments and more space for developers to implement large-scale, integrated projects that include services like healthcare and education.

Al-Shaya also proposed vertical coastal development with apartment sizes ranging from 600 to 1,000 square meters to leverage Kuwait’s scenic seafront. He highlighted the pressing need for robust infrastructure to support any urban expansion.

Meanwhile, Talal Al-Bahar, Vice Chairman and CEO of Kuwait Real Estate Company, pointed out the prohibitively high land costs, questioning how many citizens could realistically afford land if offered by the government. He emphasized that although the private sector is capable — having built 25,000 units abroad — cooperation from the government is essential. Al-Bahar called for multiple investment options, a comprehensive project delivery database, and realistic risk-sharing between public and private sectors.

Al-Mishari responded by announcing three major real estate development projects totaling 170,000 housing units, including new residential cities — Al-Sabriya, Nawaf Al-Ahmad, and Al-Khiran. He emphasized the need to balance between developer-led models and traditional “land and loan” systems. The first three investment opportunities for developers are set to be offered by the end of the year.

He confirmed the projects will cater specifically to those eligible for housing care, and villa prices will be calculated based on real estate financing studies, ensuring sustainability without imposing fixed prices. The investment period is expected to extend to 30 years or more.

Al-Mishari also outlined amendments to Law 118 of 2023, enabling companies of varying sizes — including joint-stock companies — to take part in real estate projects proportionate to their capacities. He reassured that these amendments were developed transparently and collaboratively, with no decisions made behind closed doors.

Al-Shaya suggested offering townhouses to citizens unable to afford land, asserting that housing remains a cornerstone investment in any economy. However, he raised concerns over unpredictable legal changes, warning that sudden amendments to housing laws pose serious risks to ongoing and future investments.

He concluded with a call to exploit Kuwait’s vast desert areas, which remain underutilized compared to other Gulf states. In contrast to Kuwait, where land costs dominate, housing in neighboring countries constitutes only 10 percent of total land value. Making land more affordable and accessible is, he argued, essential for any real progress.

Ultimately, the forum emphasized that while the private sector is ready and capable, effective collaboration and forward-thinking legislation from the government are critical to solving Kuwait’s housing challenges and achieving sustainable development.