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Expats in Kuwait aggrieved over unreasonable rent-hikes
Expats in Kuwait City have condemned the recent hike in rents in few areas, pertaining to affordable housing units.
Terming the hike as unreasonable and unjustified, expats said that an increase ranges from KD20 to KD45 on an average, regardless of the number of years spent by tenants in the houses. The rent escalations were, in particular, more evident in areas such as Maidan Hawally, Salmiya, Jleeb Al-Shuoukh, Khaitan, and Sharq.
According to a real estate analyst, there has not been any recent hike witnessed in high-end apartments, as quite a few of these apartments were lying vacant in the new buildings, particularly, in the Salmiya, Hawally and Maidan areas.
The analysts reveal that an average of 9 percent hike in rentals have been observed over the past two years. Farwaniya and Reggae have not seen any increase in rents, as rent for single bedroom apartment in these areas remains at KD170, while the rental for double bedroom is anywhere between KD220 and KD260, depending on the condition of the building.
Speaking about the high-end apartments, the rentals of four and five bedroom villas in South Surra, on an average was KD800 two years ago, but the same now costs between KD1200 to KD1500. An executive home costs about KD2000 or more.
Chrissie Winter, the Marketing Manager of Q8Realtor and Relocation Services, who spoke to the ‘Arab Times’, said that there seems to be a shortage of affordable properties, although areas of Salmiya, Maidan, Hawally and South of Kuwait, has seen a construction boom with plenty of lower-end apartment towers. These areas are congested, and this is the main reason behind people being reluctant to live there, Chrissie said.
“It seems that real estate owners are plucking figures from the sky, when fixing a price for their rental property. Identical villas of the same size and layout located in same street, and in the same condition, can be seen with a huge difference in rental prices, with one being given a fair price of KD1500, while the other is given a whopping KD700 more,” Chrissie says.
In the UK, the interest rates govern the property market, as against in Kuwait, where there is nothing that governs the real estate. Chrissie recommends that landlords could seek better guidance and advice before investing in the rental market, as there is a small percentage of reputable professional realty companies in Kuwait, that offer free confidential consultation service.
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