Kuwait Real Estate News
Kuwait witnesses 9 percent rental hike in two years, reveal reports
Rents in Kuwait have seen an increase of 9 percent over the past two years, although at present it seems to have stabilized, reports Arab Times.
According to Chrissie Winter, the Marketing & Consultant Manager of Q8 Realtor, huge expatriate and military influx, coupled with the current re-construction activity in Iraq, have contributed to the increase in rents.
Chrissie Winter observes, Hawally and Salmiya reported the lowest rent hike of 6.55 percent. The highest rents have been witnessed in South Surra, where a rental of about KD1,200 to KD1,500 is being charged for a four to five bedroom villa, and about KD2000 plus, for an executive home.
The areas most sought by Westerners have also seen huge surge in rents, particularly, in areas like Salwa, Bayan and Mishref where there is an increased demand for villas, while Mahboula, Mangaf and Fintas areas have seen an increase in demand for apartments.
Winter observed that the rents in high-end apartments, at present, are equivalent to that in villas, with rents of KD950 to KD1500 per month.
However, the low quality buildings would continue to remain vacant, as developers are continuing to erect new properties in a rapid manner, and unless the economy picks pace, there also lies the risk of supply surpassing demand.
As for affordable apartments, Mohammad Iqbal, a real estate consultant reveals that an increase of 12.5 percent has been seen in this segment of housing. A double bedroom in Maidan Hawally which was worth KD160 per month last year, is now being charged KD180 outright. Same is the case in Farwaniya, Mangaf, Riggae and Fintas. However, Khaitan, despite demolition of numerous buildings in the locality, has not seen considerable increase in rents.
Pointing out to the peak property valuations in Kuwait, Winter stated that the economic boom in the country has led to scarcity in quality apartments, and added that increase in rents could be controlled only by implementation of regulations that permit non-Kuwaitis to invest in real estate market.
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