East Al-Qurain, South Surra slash rents by 10-20% in housing sector

• While real estate agents report a surge in private housing supply in East Al-Qurain and South Surra, property owners are struggling to find tenants.

• Rentals have dropped by up to eighteen percent, with rates falling from 1,100 to 900 dinars in South Surra and from 1,000 to 800 dinars in Al-Fnaitees and Abu Futaira.

• Apartments with three rooms, a hall, and a maid’s room range between 400 and 500 dinars in the East Al-Qurain areas.

Real estate agents have disclosed a recent influx of apartments and rental floors in the private housing sector of East Al-Qurain (Al- Fnaitees and Abu Futaira) and South Surra. Despite reducing rents by ten to twenty percent, property owners are encountering challenges in finding tenants, according to reports in the Al Rai newspaper.

They attributed the large number of apartments and floors available for rent to the departure of a segment of Kuwaiti tenants from those areas after completing their dream homes in Khaitan, Al-Mutlaa, and southwest Abdullah Al-Mubarak. Additionally, investors’ continued capital investment in this sector has played a role.

Rental slowdown

Hussein Al Ali, CEO of Hussein Sami Al Ali Real Estate Establishment, highlighted the rental slowdown in South Surra and East Al Qurain (Al-Fnaitees and Abu Futaira) due to the abundant supply of apartments and floors in those areas. He mentioned that owners are facing challenges in re-renting their vacant apartments, particularly the larger spaces.

Al-Ali noted a rental decline ranging from ten to eighteen percent, with rents dropping from 1,100 to 900 dinars in South Surra (an eighteen percent decline) and from 1,000 to 800 dinars in Al-Fnaitees and Abu Futaira (a twenty percent drop).

He pointed out that owners have recently resorted to displaying their vacant apartments and floors in more than one real estate office to market them and attract tenants, but despite that, the largest segment remains without tenants.

On the other hand, Al-Ali stated that internal areas of private housing still maintain their attractiveness for rent, such as Qurtuba, Surra, and Rawda, where the rent for an entire floor is around 1,000 dinars.

He noted that apartments with three rooms, a hall, and a maid’s room range between 400 and 500 dinars in the East Al-Qurain areas.

Difficult to find new tenants

On the other hand, Ali Kamal, owner of Baytak Al-Dhahabi Real Estate Establishment and head of the media committee at the Real Estate Brokers Association, commented, “There are indeed significant rental offerings in the private housing market, especially in Al-Fintas and Abu Futaira. Tenants have become more discerning and mindful of the type of property they desire, thus selecting the best option that meets their needs.”

Kamal added that there are old buildings in Al-Fintas and Abu Futaira, constructed between 2015 and 2018, featuring commercial finishes but lacking parking spaces. These properties were highly sought after at the time, with low availability preventing vacancies. However, the situation has since changed, and their owners now struggle significantly to find new tenants. The balance has shifted towards tenants due to increased supply and decreased demand.

He stated that apartments in those areas, previously rented for between 400 and 450 dinars, have dropped by about ten percent, making it difficult to find new tenants.

Unlicensed brokers cause rent chaos

Kamal mentioned that some landlords delegate the task of renting their properties in these areas to caretakers or unlicensed real estate offices lacking sufficient experience. This practice causes chaos in assessing rental values accurately, leading to fluctuating property prices.