Renting an apartment poses a significant financial concern for expatriate workers, as it places a considerable burden on their budgets, typically accounting for around 30 percent of their total income. This takes into account the variability in salaries, expenses, and rents.
As per the most recent real estate data, the average rent for a one-bedroom and one living room apartment stands at approximately 180 dinars, while a two-bedroom and one living room apartment is around 230 dinars, and a studio apartment goes for 120 dinars, reports Al-Rai daily.
These rental prices are considered high, especially considering that about 62 percent of expatriate workers earn salaries below 125 dinars, and 33 percent have salaries ranging from 325 to 400 dinars, according to the Central Bureau of Statistics.
Expatriates with limited incomes often find themselves searching for affordable housing options, leading them to opt for smaller, cost-effective living spaces.
Consequently, bachelors, in particular, resort to shared accommodation, sometimes with as many as five individuals sharing the same room to alleviate the rental burden by splitting costs among themselves.
Thousands of expatriates end up residing in what is known as “partitions,” where cost savings take precedence over comfort.
A report from the Real Estate Union shows that as of the end of 2021, there were approximately 12,994 investment properties across various regions in Kuwait, comprising 396,000 apartments.
Notably, 61,000 of these apartments were vacant, indicating an average occupancy rate of 84.6 percent. With a total expatriate population of around 3.29 million, a significant portion of them grapple with limited incomes, prompting them to seek housing cost-cutting measures.
Real estate agents have observed that thousands of expatriates reside in “partitions” across different regions of Kuwait.
Some people lease apartments with two bedrooms and a living room or three living rooms and subsequently sublease them using the partition system.
This arrangement offers multiple benefits — it doubles the profits of the sublessor based on the number of partitions and rental prices while providing an affordable housing option for a substantial expatriate demographic.
The rental costs for these partitions vary depending on the region and the size of the partition, ranging from 15 to 70 dinars. This practice is particularly common in areas with high concentrations of expatriates.
Salmiya leads Kuwait in terms of investment property concentration, boasting 2,911 buildings, making it the most densely populated area for expatriates. Hawalli ranks second with 1,811 buildings, followed by Jleeb Al-Shuyoukh with 1,181 investment properties, Farwaniya with 1,152, and Khaitan with 882.
Notably, Mahboula comes in sixth with 799 buildings, followed by Al-Mangaf with 743, Al-Fahaheel with 578, Al-Jabriya with 511, and Al-Jahra with 439 properties. Abu Halifa takes the 11th spot with 359 buildings, followed by Sabah Al-Salem with 315, the Sharq region with 313, and Al-Fintas with 305. Al-Raqi has 254, Bneid Al-Qar has 198, Al-Shaab has 131, Al-Mirqab has 71, and Al-Qibla has 41 properties.
A real estate source has pointed out that many Asian families reside together in shared apartments with temporary partitions, often compromising their comfort and stability to save on expenses.
This phenomenon is particularly prevalent among Indian and Filipino communities. Interestingly, it extends to instances where both males and females live in the same apartment, albeit with separate partitions, sharing facilities like bathrooms and kitchens.
The lack of supervision to address this issue has raised concerns. The term “partition” refers to a divided area within an apartment created by temporary partitions.
These partitions typically range in size from 4 to 10 square meters and are often equipped with a wardrobe for clothing and a small refrigerator, typically sufficient for one or two people at most.
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