The Executive Director of the Competition Protection Authority, Dr. Abdullah Al-Owaisi, has submitted a proposal to the Minister of Commerce and Industry and Minister of Communications and Information Technology Mazen Al-Nahedh that includes 11 recommendations aimed at correcting the course of real estate prices allocated for private housing, and enhancing competition in the sector, in preparation for submitting them to the Council of Ministers.
The study submitted by Al-Owaisi, who previously held the position of Undersecretary of the Ministry of Commerce and Industry, on his last working day in the agency before his resignation took effect, monitored the inflation of private residential real estate prices from 2020 to 2021, reports Al-Rai daily.
He explained that despite the decrease in the number of private real estate trading deals during the first half of 2022 compared to the same period of 2021, its prices did not decrease, which requires the agency’s intervention to search for the causes of the problem and the extent of its impact and to find appropriate solutions to it.
The study, which was prepared by a committee chaired by Al-Owaisi and members from the Ministries of Justice, Finance, Trade and Industry, Electricity and Water, the Municipality, the Public Authority for Housing Welfare, the College of Law and the Apparatus, as representatives showed that the Kuwaiti family needs 58 years of savings or paying private real estate loan installments to own private housing, after deducting 840 dinars per month.
The proposal recommends the following:
— Approval of the law establishing the Land and Real Estate Authority.
— Approval of the real estate developer’s law to activate the strategy of the Public Authority for Housing Welfare related to the real estate developer to reduce the burden on the state and accelerate the pace of allocating housing plots to the beneficiaries.
— Lifting the electricity and water subsidy on the owner of the private residential property, starting with the second private residential property and more.
— Reconsidering the space land tax law so that it is progressive and the need to impose taxes on multiple properties of private housing (when a person owns more than one house).
— Legislatively stipulating the prohibition of concluding a real estate agency that cannot be dismissed, or expressly stipulating the application of the provisions of Decree No. 5 of 1959 in the Real Estate Registration Law and its amendments, so that its conclusion results in all the effects of selling the property in accordance with the provisions of the aforementioned decree.
— Accreditation of one entity for real estate appraisal, and the appraisal is based on unified international technical standards to ensure the quality of the appraisal process.
— Activating the role of the executive and oversight apparatus of the Kuwait Municipality on violating real estate and building percentages, as private housing has been exploited for investment purposes and transgression on state property.
— Approval of the Owners Association Law to regulate the relationship between the owners of jointly owned real estate units.
— Establishing an integrated database regarding all real estate in Kuwait and lease contracts, and linking it automatically with the relevant authorities to facilitate the process of transferring and collecting data and enabling the regulatory authorities to monitor residential real estate transactions, and grant rental allowances for documented lease contracts.
— Issuance of a decision by the Public Authority for Housing Welfare to grant the divorced woman the right to permanent residence until the state provides housing for her.
— Activate Law No. 21 of 2019 and work to register all real estate in the real estate registry.
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