Secretary-General of the Real Estate Union Qais Al-Ghanim said that the real estate investment sector (apartments) will witness more pressure during the coming period with the increasing number of the expatriates leaving Kuwait because of the increasing number of vacant apartments, reports Al-Rai daily.
Al-Ghanim told the daily the increasing burden on expatriates day after day due to the increase in fees and the rising cost of living, in addition to the state’s tendency to terminate their services from the public sector jobs forced many to leave, especially during the past few months. All this had a negative effect on the consumer situation in the country in general and on the investment property sector in particular.
He pointed out that some property owners to avoid apartments being vacant in their buildings, have resorted to housing singles up to 12 people in one apartment, which puts great pressure on the services of water and electricity in addition to the inconveniences that they cause to the people of the building.
Al-Ghanim explained that investment properties witnessed rent reductions of up to 20 percent during the last period. He pointed to the huge discounts offered by malls and shops in recent times, which last for very long periods, which means the decline in consumption in Kuwait, and therefore all companies have been affected by the ongoing trend.
He stressed that the state should develop permanently on the land registry to prevent manipulators from entering the line of property of others. He said that the Union of Real Estate was studying with the Ministry of Justice on amendments to the law of the Union of Apartment Owners, stressing that there is a tendency to make it mandatory soon, which gives the buyer confidence that it will not cause any problems with other owners in the future.