Kuwait: High Rents Strain Expat Budgets
Kuwait City, Kuwait: A recent real estate report by KFH reveals stable occupancy rates across various property types in Kuwait, ranging from 87% to 90% for the first quarter of 2024.
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Private Housing Market
The report highlights variations in private housing rents across different areas. While overall prices dipped slightly year-on-year, rents remained steady in some locations and decreased in others. This trend is attributed to high demand near workplaces and shopping centers, fueled by citizens awaiting government housing allocation.
For a typical three-bedroom unit with a maid’s room (in a 135 sqm private house within a 400 sqm property), the average rent remained unchanged at 482 dinars per quarter. However, there are variations by governorate:
- Capital Governorate: 570 dinars (stable annually)
- Hawalli: 516 dinars (up 0.6% annually)
- Farwaniya: 396 dinars (down 1.4% annually)
- Mubarak Al-Kabeer: 436 dinars (down 0.2% annually)
- Ahmadi: 375 dinars (unchanged)
- Jahra: 345 dinars (down 0.7% annually)
Investment Properties
The average rent for a two-bedroom apartment (60 sqm) across all governorates was 285 dinars per quarter, stable compared to the previous quarter but up 2.4% year-on-year. Increases varied by location, with the Capital Governorate experiencing the highest rise (4% annually).
Commercial and Industrial Property
Rental values for commercial properties remained unchanged both quarterly and annually, with an average price of 23.6 dinars per square meter for ground floor space. Similarly, industrial property rentals across various areas showed minimal fluctuations.
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The KFH report emphasizes that rents are highly influenced by location, property features, and size, reported Al-Rai daily.
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