Kuwait real estate market recorded 2,541 deals worth 1.64b dinars between March and September
- Kuwait’s real estate market has demonstrated resilience rather than collapse under the pressure of regional conflict. While uncertainty, regulation, seasonal factors and liquidity constraints have moderated activity and affected prices, the market continues to attract investment, with its future trajectory closely linked to regional stability, available liquidity, regulatory policy and investor confidence.
- The war is the biggest influence on investor sentiment, and cash is the deciding factor — Qais Al-Ghanim
- Trading volumes have declined by 20 to 30 percent, while residential real estate has increased in volume but decreased in price — Suleiman Al-Dulaijan
- Additional activity is expected in the fourth quarter amidst ample liquidity eager for investment — Khaled Al-Sagheer
Despite the regional war that began on February 28, Kuwait’s real estate market has maintained a measure of resilience, with transactions worth about 1.64 billion dinars recorded between March and September through 2,541 deals. The private housing sector remained the largest component of the market, accounting for 727.3 million dinars, although its transaction activity declined by about 30 percent amid market uncertainty and the impact of recent regulatory measures.
According to Ministry of Justice data, private housing accounted for 1,834 transactions, representing 44.3 percent of total transaction value and 72.2 percent of the number of deals. The investment sector followed with 558.22 million dinars from 617 transactions, while commercial properties recorded 256.05 million dinars through 67 transactions. Industrial properties reached 39.31 million dinars through 10 transactions, the coastal strip recorded 34.25 million dinars through 11 transactions, and agricultural properties accounted for 29.16 million dinars through two transactions.
The figures point to a degree of relative stability in Kuwait’s real estate market despite exceptional regional and global economic conditions, with the normal seasonal slowdown in summer also contributing to the moderation in trading activity.
Real estate expert Qais Al-Ghanim said the slowdown resulted from several overlapping factors, particularly the regional war, market uncertainty and recently introduced laws and regulatory decisions. He said the conflict affected not only buying and selling activity but also the psychology of investors, particularly those with limited capital, who tend to adopt a more cautious approach during periods of instability.
Al-Ghanim noted that recent Ministry of Justice measures, including changes affecting real estate brokerage arrangements, transaction procedures and certified-check requirements, helped moderate trading and curb speculative activity. He stressed that liquidity remains the decisive factor in the market, with buyers’ cash capacity playing a central role in determining both prices and transaction volumes.
He also said demand in the private housing sector is currently particularly strong in Shuwaikh, Shamiya, Al-Dahiya and Al-Nuzha, where prices have risen, while demand in other residential areas remains comparatively normal.
Real estate expert Suleiman Al-Dulaijan, however, offered a different assessment of market activity, saying transaction volumes increased by 20 to 30 percent compared with the same period last year following the outbreak of the regional war. He also pointed to the impact of fees imposed on vacant land.
Al-Dulaijan said the residential sector recorded higher transaction volumes during the six months following the end of February, accompanied by a decline in prices. Meanwhile, the investment sector remained stable as investors increasingly compared real estate returns with bank deposit rates, with some turning toward investment properties in search of higher returns. He attributed part of the investment sector’s resilience to government support and measures aimed at containing the economic effects of the war, including maintaining the availability of basic commodities despite wartime pressures.
Khaled Al-Soghayar, CEO of Reem Real Estate Company, said the market had passed through an unusual combination of circumstances, beginning with Ramadan, followed by the outbreak of the Iranian-American war and then the summer period, which traditionally witnesses weaker real estate activity.
He said the impact of the vacant-land law, combined with these developments, put pressure on prices and trading volumes. However, he emphasized that lower activity should not necessarily be interpreted as weaker demand, but rather as evidence of a wait-and-see approach among market participants.
With the market entering the fourth quarter, Al-Soghayar said the period traditionally brings stronger trading activity. He noted that lower asset prices could make some properties more attractive to investors and traders, while returns adjust to the new price levels.
He said the market has already begun a process of price and market correction, creating conditions for a gradual recovery as investors with available funds await greater clarity and stability. He expected trading activity to improve toward the end of the year or early next year, particularly if regional conditions stabilize and new supportive regulatory measures are introduced.
Kuwait’s real estate market has demonstrated resilience rather than collapse under the pressure of regional conflict. While uncertainty, regulation, seasonal factors and liquidity constraints have moderated activity and affected prices, the market continues to attract investment, with its future trajectory closely linked to regional stability, available liquidity, regulatory policy and investor confidence.
