In a recent Kuwait Times article, evidence points to a drop in rent prices and a continuation of the slow down overall in real estate in Kuwait. The article stated that the slow down in real estate activity that normally happens in summer was also “exacerbated by Ramadan and a sluggish real estate sales market, which was down 22 percent year over year”. And the slow down isn’t picking up even though this is traditionally the busiest time of year for rentals; starting late August as schools reopen and people return from summer vacation.
The Times stated that in “Salmiya, rents dropped by an average of KD60 compared to two months ago.” They further predicted rents to drop as there has been “a 30 percent decrease in price of investment lands in many areas, including Hawally, Salmiya and Farwaniya, with supply exceeding demand.”
“Landlords usually wait for September and October to rent their empty apartments,” but the Times stated that this is likely to be different this year as rents are expected to see a notable decrease. “The real estate market has been saturated following the boom in construction investment buildings, and rents will eventually go down following years of rent bubble”.
After many years of steady increases in rents and fierce competition for the best apartments and villas, a correction in prices would seem a natural course and a welcome relief to the high cost of housing in Kuwait.
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