The Kuwait Finance House (KFH) report reveals that residential rental values in Kuwait exhibit variation based on distinct factors and diverse areas.
The third quarter of 2023 saw an uneven annual change in most areas, with a marginal decline in private housing prices and a slight increase in rental values for some properties in this category, reports Al-Anba daily.
The report notes stability in prices for private housing areas, attributing the rise in demand to the waiting period for housing allocations, leading a significant portion of citizens to opt for private housing rentals. This increased supply, particularly in areas close to workplaces and shopping centers, stimulated demand for renting private housing.
For a second-floor unit featuring 3 rooms and a living room, spanning 135 square meters in a private housing building of 400 square meters at the governorate level, the average rental value remained steady at 482 dinars by the end of the third quarter. There was no change from the second quarter, but a slight decrease of 0.4% on an annual basis.
In the Capital Governorate, the average rental value reached 570 dinars, marking an 0.8% decrease at the end of the third quarter compared to a notable 11% increase in the same quarter of 2022. The Hawalli Governorate recorded a value of 516 dinars, reflecting a 0.7% annual decrease.
The Farwaniya Governorate reported no quarterly change, maintaining a rental value of 397 dinars, showing a 1.9% increase on an annual basis. In Mubarak Al-Kabeer Governorate, the average rental value for a similar area was 437 dinars, indicating an annual increase of 0.8%. Meanwhile, Al Ahmadi reported an unchanged value of 375 dinars on a quarterly and annual basis.
For the entire ground floor of a private residential property with an area of 400 square meters, the governorate-level average rental value was 890 dinars, experiencing a slight annual increase of 0.1% by the end of the third quarter of 2023.
In the Capital Governorate, the average rental value reached around 1,045 dinars, with no change on an annual basis. In the governorate, the average rental value was 953 dinars, showing a 1.4% annual increase, while in the Farwaniya governorate, it was 736 dinars, indicating a 2.3% annual decrease.
For the first full floor or second floor in private housing properties with an area of 400 square meters at the governorate level, the rental value was 790 dinars, with no quarterly change and a slight decrease of 0.6% on an annual basis.
In the Capital Governorate, the rental value was approximately 945 dinars, down 1% on an annual basis. Adailiya recorded the highest rental values at 1,100 dinars, followed by Al Rawdah at 1,000 dinars. In contrast, Granada and Sulaibikhat, considered the lowest areas in the governorate, reported rental values of 800 dinars and 600 dinars, respectively, with no annual change. The Hawalli Governorate registered an average rental value of 853 dinars, representing a 0.6% annual decrease.
At the investment property level, KFH’s report indicates that the average rental value of a two-bedroom apartment with an area of 60 square meters at the governorate level is 285 dinars by the end of the third quarter of 2023, showing no quarterly change but a 2.3% increase on an annual basis.
The rates of increase in the average rental value varied across regions and governorates. In the Capital Governorate, the average rent reached 313 dinars, with no quarterly change and a 4% increase on an annual basis. Most investment areas in the governorate, including Dasman and Bneid Al-Qar, experienced increases of 5% and approximately 1.6%, respectively, on an annual basis.