Govt measures, market stagnation drive down prices of chalets in Kuwait

State-owned chalets in Kuwait, once highly sought after due to their prime location and sea views, are experiencing a significant decline in prices.

This is attributed to recent government decisions affecting usufruct and profits, as well as stricter measures for collecting overdue debts, according to Al-Qabas daily.

Real estate experts, highlight the imposition of additional fees and a natural end to the real estate cycle as factors contributing to the price drop.

For instance, the transfer fee for a chalet with a facade is now 3,000 dinars per square meter, making some people consider purchasing freehold chalets instead.

Market stagnation, rumors, and increased fears about future government decisions have further fueled uncertainty, with concerns about the withdrawal of chalets for development projects, such as the Jahra Corniche.

Fahd Al-Moumen of the Bu Aqar platform noted that fears surrounding inheritance and ownership rights, particularly after the death of the license holder, have also dampened confidence in the chalet market.

Additionally, government decisions, including fluctuating transfer fees, have disrupted the market, causing hesitation among potential buyers and investors.

The prices in various areas, like Daba’iya, Bnaider, and Al-Julaia’a, have significantly dropped from their peak levels, further highlighting the ongoing changes and challenges faced by the market.