KUWAIT CITY, Jan 9: The real estate market in Kuwait witnessed significant growth in 2024, reaching its sixth-highest value in history with a total of 3.7 billion dinars in transactions, a 36 percent increase compared to 2023. The fourth quarter saw the highest trading value, driven by a surge in investment sector activity, especially in December. The monthly trading averaged 309 million dinars with December marking the peak month at 442 million dinars, reflecting a 33 percent increase from November and a 126 percent rise compared to the same month in 2023.

Residential real estate accounted for 41 percent of the total transactions, experiencing a slight decline from 2023. However, it still led in transaction value with 1.554 billion dinars, up 20.7 percent from the previous year. The residential sector’s trading activity peaked in the last quarter, with October being the highest trading month. The investment real estate saw the most substantial value growth, reaching 1.224 billion dinars, a 49 percent increase over 2023. Despite this, it ranked seventh historically in terms of total value, with 2014, 2007, and 2018 remaining the highest years. A relative decrease in prices in certain areas like Hawalli and Ahmadi contributed to increased trading activity in investment real estate.

Commercial real estate experienced the highest trading value in 2024, reaching 745 million dinars, a 75.3 percent increase from 2023. This sector benefited from factors like expectations of interest rate cuts, changes in anti-monopoly laws, and increased credit facilities. The total number of transactions reached 4,950, marking a 13.6 percent increase over the previous year. The residential sector dominated in terms of transaction numbers, accounting for 70 percent, while investment real estate accounted for 24.44 percent and commercial real estate made up 2.7 percent. Notably, December also saw the highest number of transactions, with 529 deals. The overall demand in the market remained strong, driven by factors like increased housing applications, a return of expatriates, and legislative developments that encouraged investment in real estate. This stability suggests that the real estate market in Kuwait continues to be a lucrative sector despite global economic challenges.