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Kuwait real estate market: 7% rise in transaction value in H1 2024

From January to June 2024, real estate contracts registered with the Ministry of Justice reached approx. $5.49 billion in Kuwait

Kuwait real estate market: 7% rise in transaction value in H1 2024

Kuwait’s real estate market experienced a seven per cent increase in real estate transactions in the first half of this year compared to the second half of last year. From January to June 2024, the total value of real estate contracts registered with the Ministry of Justice reached approximately $5.49 billion (1.619 billion dinars), showing a rise of $380.8 million (112 million dinars) from the $512.38 billion (1.507 billion dinars) recorded in the second half of 2023. Although there was an overall growth in total contract value, there was a noticeable decrease in various types of real estate transactions, with the exception of exhibitions and warehouses.

During the first half of the year, there were four exhibition contracts registered, totalling $3.67 billion (10.8 million dinars). Additionally, the number of warehouse contracts increased by 55.5 per cent, with nine contracts compared to four in the previous period. The total value of warehouse contracts rose to $5.71 billion (16.811 million dinars), up from $2.90 billion (8.544 million dinars) in the preceding period. Private property contracts numbered 1496, with a total value of $234.56 billion (689.9 million dinars), marking a decrease of 54 contracts compared to the second half of last year.

There was also an eight per cent decrease in investment contracts, totalling 509 contracts valued at $1.53 billion (451 million dinars), down from 554 contracts in the previous period. In terms of commercial contracts, there were 69 contracts with a total value of $1.38 billion (406 million dinars), marking an 11.5 per cent decrease from the 78 contracts that were recorded in the second half of last year.

The number of craft contracts saw a significant decrease of 41 per cent, with only nine contracts registered amounting to $3.10 billion (9.125 million dinars), as compared to 22 contracts in the previous period. Coastal strip contracts experienced a notable decline, with only one contract worth $10.88 billion (32 million dinars) registered in the first half of this year, down from four contracts in the second half of last year.

During the first half of 2024, Kuwait’s real estate market experienced contrasting trends with an increase in total transaction value by seven per cent to $5.49 billion, alongside a shift in sectoral performance. Despite the overall growth, certain property categories saw a decline compared to the previous half of 2023. This shift creates an opening for stakeholders such as developers, investors, and regulatory bodies to adapt their strategies and take advantage of the changing market dynamics.