A government committee has been formed comprising senior officials from about six ministries as members, including undersecretaries of the ministries to submit proposals that could limit the risks of the growing housing crisis and calm residential real estate prices.
The sources indicated that the government committee has so far discussed a set of initial proposals, the most prominent of which is the allocation of one house for each citizen complete with electricity and water cost, according to the currently applied reduced tariff, with the possibility of excluding those who prove that they are married, reports a local Arabic daily.
It is noteworthy that the cost of consuming a kilowatt of electricity in private housing areas is two fils, out of about 35 fils, the real cost of electricity, while the pricing of commercial and investment areas is 5 fils, which means that the cost of electricity consumption in these two sectors is 150 percent higher than residential ones.
The sources stated that the committee is also considering not allowing the government house to be disposed of 10 years before its allocation, and stopping what is known as exchange between beneficiaries, as the committee believes that allowing substitution and waiver between holders of modern lands reduces demand in some areas at the expense of others.
The sources pointed out that the committee noted that among the most prominent reasons for the high prices of private housing in Kuwait is the low cost of electricity and water, as this consideration increased the desire of many to move their investments, or at least direct the majority of them from investment real estate to residential in an effort to benefit from the low pricing of services.
The committee is chaired by the Executive Director of the Competition Protection Authority, Dr. Abdullah Al-Owaisi, and includes in its membership representatives from the ministries Of Justice, Electricity, Housing, Municipality, and State Property Sector in the Ministry of Finance.
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