Spacious apartments that were once limited to the well-heeled have become more affordable in recent months, as supply continues to exceed demand in the real-estate sector.
Real estate market in Kuwait is said to be caught at the crossroads as new government policies and an economic slowdown have combined to create a slump in the housing and apartment sector of the country.
Government policies that aim to reduce expatriates and gradually assimilate more Kuwaitis into the workforce and prevailing economic conditions, as well as rise in cost of living from new price hikes initiated by the government on services offered to expatriates, have resulted in a lot of people leaving Kuwait, or at least sending their families away. This has led to a fall in demand for apartments and consequently a fall in rents for a wide range of properties.
Plunge in rentals have given people a sense of affordability in the property market, with more choices in preferable locations, better facilities and spacious rooms. The drop in rents has provided people with the option of better living at lower costs.
Residents have been moving into areas, which were earlier out of their reach due to budget constraints. A significant number of tenants have moved from apartments to villas for more space, ample area for their children to play, garden and even a pool, eventually allowing them to enjoy a higher quality of life.
A certain percent of people have been locating into newer localities, simply because they are more reasonably priced and offer wider choices. In a few cases, renters have also moved in the same property in the same area for a lower price.
On the other hand, people have taken advantage of the dwindling rental prices and settled into cheaper properties giving them the opportunity to save more money.
While a few landlords defy the drop in rental rates and still offer the same high rates, residents are now more aware of the decline in the rent value and therefore demand a slash in the rent, otherwise they are willing to move to a cheaper apartment.
Certainly, the diminishing value of the real estate sector is turning into a boon for some of the residents of Kuwait.