Kuwait's Private Housing Prices Have Stabilized

At the end of the third quarter of 2023, the Kuwait Finance House (KFH) reported that private housing prices in Kuwait had stabilized, increasing by 0.1 percent compared to the second quarter.

The decline follows a decline in the first and second quarters. The average price per square meter now stands at 1,074 dinars. It is noteworthy that this is the first annual decrease 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 had continuous annual increases reaching 17 percent.

At the end of the third quarter, the average price per square meter slightly increased over the second quarter, according to KFH's report. Some Kuwaiti governorates have seen private housing prices decline while others have seen annual increases slow.

Capital Governorate saw a marginal increase, while Farwaniya and Jahra Governorates saw a 0.1 percent increase. Farwaniya experienced a slight annual increase of 0.2 percent, whereas Jahra recorded a 2.1 percent annual decrease. Compared to the first quarter, Al-Ahmadi declined by 0.3 percent, while Hawalli decreased by 0.4 percent, and Mubarak Al-Kabeer declined by 0.1 percent, with annual decreases of 1.4 percent and 1.2 percent, respectively.

According to KFH, private residential real estate prices in the Capital Governorate increased to 1,413 dinars at the end of the third quarter, an increase of 0.5 percent. 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.

Private residential land prices in Hawalli Governorate have declined for three consecutive quarters, reaching 1,190 dinars at the end of the third quarter of 2023, a decrease of 0.4 percent.

A 1.4 percent decrease compared to the third quarter of 2022 marks the second annual decline in the governorate in about five years.

At the end of the third quarter, the average price per square meter in Farwaniya Governorate reached 781 dinars, 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.

In Mubarak Al-Kabeer Governorate, the average price per square meter for private residential land reached 895 dinars at the end of the third quarter, a decrease of 0.1 percent quarterly and 1.2 percent on an annual basis.

There was no quarterly change in the price of 664 dinars per meter in Al-Ahmadi Governorate from the second quarter, but the price decreased by 3.7 percent quarterly; the average price in the governorate increased by 2.7 percent annually.

As of the end of the third quarter, private residential land prices in Jahra Governorate totaled 628 dinars, representing a 0.1 percent quarterly increase and a limited 2.1 percent annual decline.

Despite geopolitical tensions and global inflation fears, KFH notes that the real estate sector remains resilient, with varying increases observed across sectors.

At the governorate level, the average price of investment real estate lands remained stable at 1,592 dinars by the end of the third quarter, unchanged from the first quarter.

By the third quarter of 2022, annual growth rates had slowed to 0.9 percent, compared to 6 percent earlier.

Several governorates experienced a slowdown in average price increases, including the Capital Governorate (2.6 percent), Hawalli (0.1 percent), and Farwaniya (0.6 percent), whereas Jahra increased by 3.1 percent, Mubarak Al-Kabeer by 2.7 percent, and Al-Ahmadi remained the same.

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