The Kuwaiti real estate market experienced a noticeable decline in activity during the week from April 2 to 3, 2025, compared to the previous week. According to the weekly report issued by the Real Estate Registration and Documentation Department, there was a decrease in the number of contracts and transaction types, reflecting a temporary slowdown in the market. This may be due to seasonal changes or new economic and regulatory factors.
What was the total number of real estate contracts registered during this week?
Only 17 real estate transactions were recorded this week, compared to 94 transactions in the previous week, a significant decrease of 77 contracts. This drop is quite noticeable, especially considering the stability of the real estate market in the preceding weeks.
The contracts were distributed as follows:
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12 contracts for private properties
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5 contracts for investment properties
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0 for commercial, industrial, shops, banks, exhibitions, coastal strip, and warehouses
What was the total value of these contracts?
Despite the drop in the number of contracts, the total value of transactions remained relatively large, with:
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Private property: approximately 3.94 million KWD
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Investment property: 5.26 million KWD
No value was recorded for the other property types mentioned above.
This means the total real estate trading for the week amounted to about 9.2 million Kuwaiti Dinars.
What explains the decline in real estate activity this week?
According to the report, the decline in real estate activity can be attributed to several factors:
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A decrease of 60 transactions in private property
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A drop of 9 transactions in investment properties
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A loss of 1 transaction in industrial properties
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No transactions recorded for commercial, shops, exhibitions, banks, coastal strip, and warehouses
The decline may be related to the market’s cautious approach due to new regulatory decisions, price fluctuations, or even the beginning of the Ramadan season, which typically impacts real estate activities.
Did all governorates experience this decline?
Yes, although to varying degrees. Here’s a summary of the transactions by governorate:
| Governorate | Number of Transactions | Total Value (KWD) |
|---|---|---|
| Capital | 0 | 0 |
| Hawally | 3 | 4,325,000 |
| Farwaniya | 5 | 3,187,585.5 |
| Mubarak Al-Kabeer | 1 | 385,000 |
| Ahmadi | 7 | 1,129,000 |
| Jahra | 1 | 176,000 |
It is clear that the Hawally and Farwaniya governorates maintained relatively higher activity, especially in investment properties, while the Capital, Mubarak Al-Kabeer, and Jahra regions saw almost no real estate movement.
What types of transactions were recorded in Hawally governorate?
Hawally recorded three transactions:
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Private property:
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A house in Bayan valued at 560,000 KWD
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A building in Jabriya valued at 465,000 KWD
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Investment property:
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A building in Salmiya valued at 3.3 million KWD
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This investment property deal was among the highest valued this week, confirming that Salmiya remains an attractive spot for real estate investment due to its strategic location.
What about Farwaniya governorate?
Farwaniya was the second most active governorate, with a variety of transactions:
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4 private property transactions in areas such as Rabiah, Ardiya, Firdous, and Jleeb Al-Shuyoukh, with a total value of 1.42 million KWD
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1 investment property transaction for a building in Khaitan valued at 1.76 million KWD
Farwaniya shows signs of stability and strong demand in the medium-range market, both in residential and rental units.
How were the transactions in Ahmadi governorate?
Ahmadi recorded 7 transactions, although most of them involved relatively smaller units:
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Investment apartments in Mahboula, ranging from 35,000 to 120,000 KWD
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Two private property transactions in Sabah Al-Ahmad Sea and residential areas, with a total value of about 803,000 KWD
It is clear that Ahmadi is a desirable destination for modern and medium-sized residential projects, although it still lacks large-scale deals.
What about real estate activity in the other governorates?
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Mubarak Al-Kabeer: Only one private property transaction in Qurain, valued at 385,000 KWD
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Jahra: One transaction in Waha area, valued at 176,000 KWD
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Capital: No transactions were recorded this week
This decline in activity in certain governorates may reflect a temporary shift toward specific areas like Farwaniya and Hawally, or a partial reluctance due to market conditions.
Were there any regulatory changes that affected market activity?
Yes, the report mentioned the continued implementation of Law No. (125) of 2023, which abolished 125 real estate agencies during the week. This step is part of efforts to regulate the real estate sector, control the market, and prevent unlicensed transactions.
This decision may have had a direct impact on the decline in transactions, especially those that were carried out through unlicensed intermediaries.
What are the market expectations for the coming weeks?
Despite the decline, the Kuwaiti real estate market shows resilient characteristics and the ability to recover quickly. It is likely that the market will experience:
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A gradual recovery after the cautionary period
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A gradual return of commercial and industrial properties
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Noticeable activity in investment areas like Salmiya and Khaitan
The weekly report for the period between April 2 and 3, 2025, reflects a temporary calm in the Kuwaiti real estate market. The drop in the number of contracts and the overall value does not necessarily indicate market weakness but may signal a reorganization phase, especially with the introduction of new regulations that govern agencies and transactions.
At the same time, investment properties are holding strong, particularly in key areas like Salmiya and Khaitan, while private properties continue to attract a wide range of buyers across all governorates.
[sc_fs_faq html=”true” headline=”h3″ img=”” question=”Why does real estate trading activity fluctuate from week to week in Kuwait?” img_alt=”” css_class=””] Real estate trading activity is influenced by several factors, including: seasons (such as Ramadan or holidays), regulatory changes (such as the cancellation of agencies), new property offers or government projects, bank interest rates and financing availability, and changes in real estate demand from individuals and investors. [/sc_fs_faq]
[sc_fs_faq html=”true” headline=”h3″ img=”” question=”What is the difference between private property and investment property in official reports?” img_alt=”” css_class=””] Private property: Includes residential units intended for individual or family ownership, such as houses and residential land. Investment property: Includes buildings and units intended for rental or investment, such as residential complexes or leased apartments. [/sc_fs_faq]
