Kuwait Real Estate News
Abu Dhabi, Kuwait aims to tackle rise in property prices
Abu Dhabi has lowered the capping on annual rent rises, while Kuwait has announced its intention to tackle rising property prices, as part of plans to address growing concern about inflation, across the Gulf Arab region.
Abu Dhabi has revealed that it would reduce the maximum rent increase from 7% to 5%. Office rents in Abu Dhabi have grown about 40% in two years, said Colliers, the Property Consultancy.
“The need for such a measure stems from strong economic growth that Abu Dhabi experienced during recent years, along with rapid jumps in demand for commercial and residential real estate,” the Executive Council of Abu Dhabi mentioned in its statement.
Kuwait, which has dropped its dollar peg last year to help control inflation, has also set its sights on the property market. The cabinet discussed the need for government and parliament to focus on rising residential and property prices, reported KUNA.
The inflation in Kuwait touched 6.2% in September. The Finance Minister, Mustapha Al-Shimali, revealed that the government would increase salaries of the public sector employees, where majority of Kuwaitis are employed.
The Abu Dhabi government hopes that the rent control measures would be temporary, and the supply to the property market would quickly catch up with demand, permitting the market to function without further government intervention.
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