The Kuwait Finance House (KFH) has reported that private housing prices in Kuwait have stabilized, marking a 0.1 percent increase at the end of the third quarter of 2023, compared to the second quarter.
This follows a decline in the first and second quarters. The average price per square meter now stands at 1,074 dinars. Notably, this marks the first annual decline in the average general price in over two years, with a 0.1 percent decrease compared to the third quarter of the previous year, which saw continuous annual increases reaching 17 percent, reports Al-Rai daily.
According to KFH’s report, the average price per square meter slightly increased at the end of the third quarter compared to the second quarter. The annual increase in private housing prices has slowed in some Kuwaiti governorates and declined in others.
The Capital Governorate witnessed a marginal increase, while Farwaniya and Jahra Governorates saw a 0.1 percent quarterly increase. Farwaniya experienced a slight annual increase of 0.2 percent, whereas Jahra recorded a 2.1 percent annual decrease. Al-Ahmadi saw no quarterly change but a 2.7 percent annual decrease, while Hawalli decreased by 0.4 percent and Mubarak Al-Kabeer by 0.1 percent in the second quarter, with annual decreases of 1.4 percent and 1.2 percent, respectively.
KFH highlighted that the average price per square meter for private residential real estate in the Capital Governorate increased to 1,413 dinars at the end of the third quarter, with a 0.5 percent quarterly increase. The annual increase slowed to 0.1 percent, compared to a significant annual increase of 21 percent in the same period of the previous year.
The report noted a consistent decrease in price levels for private residential lands in Hawalli Governorate for three consecutive quarters, reaching 1,190 dinars at the end of the third quarter of 2023, with a 0.4 percent quarterly decrease.
This marks the second annual decline in the governorate in about five years, with a 1.4 percent decrease compared to the third quarter of 2022.
In Farwaniya Governorate, the average price per square meter reached 781 dinars at the end of the third quarter, showing a 0.1 percent quarterly increase. The annual increase was about 0.2 percent, slowing down from continuous annual increases that reached 15.7 percent at the beginning of 2022.
KFH reported that the average price per square meter for private residential land in Mubarak Al-Kabeer Governorate reached 895 dinars at the end of the third quarter, with a 0.1 percent quarterly decrease and the annual price levels decreased by 1.2 percent.
Al-Ahmadi Governorate recorded 664 dinars per meter with no quarterly change from the second quarter but experienced a 3.7 percent quarterly decrease; the average price in the governorate increased by 2.7 percent annually.
In Jahra Governorate, private residential land prices amounted to 628 dinars at the end of the third quarter, with a 0.1 percent quarterly increase and a limited 2.1 percent annual decrease.
Despite risks in the investment environment, including geopolitical tensions and global inflation fears, KFH notes that the real estate sector remains resilient, with varying increases observed across sectors, including investment real estate.
The KFH reported that the average price in investment real estate lands remained stable at around 1,592 dinars at the governorate level by the end of the third quarter, unchanged since the first quarter of 2023.
The annual rate of increase slowed to 0.9 percent, compared to about 6 percent at the end of the third quarter of 2022.
On an annual basis, the rate of increase in the average price slowed for most governorates, including the Capital Governorate (2.6 percent), Hawalli (0.1 percent), and Farwaniya (0.6 percent), while Jahra increased by 3.1 percent, Mubarak Al-Kabeer by 2.7 percent, and Al-Ahmadi remained unchanged.