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Expat wanderer

Housing Prices Fall 30 – 40% in Kuwait

From today’s Arab Times

Price of residential homes falls as ‘meltdown’ digs in

KUWAIT CITY, March 10, (KUNA): Prices of residential homes in Kuwait have fallen between 30 and 40 percent since February, the Manazel Holding Company chairman said here Tuesday. The drop differs from one area to another, dipping by 60 percent at some areas and 15-20 percent at others, Adnan al-Nesf told Kuwait News Agency (KUNA). The prices have been on the wane since Laws 8 and 9 for 2008 were put in place. Both laws bar companies from selling or buying houses, he said.

The global financial crisis is to blame for the decline in house rates, al-Nesf added. The laws were adopted after the prices had reached record levels, but the situation could have been solved in a way that would not lead to a ban on home activities by mortgage companies, he said. Several rules and controls could be imposed on dealing in homes that directly concern citizens; including allowing landlords to sell their houses only after five years of buying, he suggested.

However, he voiced optimism that the crisis would be resolved soon, especially following a recent court ruling allowing the Kuwait Finance House (KFH) to deal in houses. An improvement in the real estate sector would surely push the economic wheel forward, he argued, pointing out that the property market was waiting for an in-the-offing rescue plan to be put in place soon. Just like other companies, real estate dealers have been negatively affected by the current world financial meltdown, he affirmed. But, he recognized that most property dealers were trying to retrench their expenses, lay off workers or cut workers’ salaries.

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March 11, 2009 - Posted by | Financial Issues, Kuwait, Living Conditions, Political Issues, Social Issues

13 Comments »

  1. Can you lend me some money to buy a house now? please? 😛

    Comment by Rand_4 | March 11, 2009 | Reply

  2. I hope the rental prices drop as well. All those greedy, nasty brokers and opportunistic property owners… hope the bottom drops right out.

    Comment by OMG | March 11, 2009 | Reply

  3. Is this mostly due to expats having to sell quickly, as in Dubai, or do you attribute it to something else?

    Expat Abroad
    expat21.wordpress.com

    Comment by expat21 | March 11, 2009 | Reply

  4. LOL Rand-4, No!

    OMG – I think some of the prices are easing already.

    Expat21 – I don’t believe expats are allowed to own property in Kuwait. I think only Kuwaitis are allowed to own houses here. I believe most expats rent.

    Comment by intlxpatr | March 11, 2009 | Reply

  5. I don’t see rents dropping, God damn it!!

    Comment by zaydoun | March 12, 2009 | Reply

  6. I think the prices should go down even more to be fair. Houses are still way too expensive even for the middle-class.

    Comment by Durabul | March 12, 2009 | Reply

  7. Would a cheezburger work things to lend me money? 😛

    Comment by Rand_4 | March 12, 2009 | Reply

  8. That is good news to me, I always wanted to buy that plot of land next to my house. The neighbors are dumping all their garbage in it. If I buy it, I will keep it nice and clean.

    Comment by Don Veto | March 12, 2009 | Reply

  9. Zaydoun – I was looking at Qatarliving.com, and I see rents are dropping there. If rents are dropping in Dubai and Qatar, I can’t imagine Kuwait is far behind.

    Durabul – That’s the truth!

    Geek – are you small and furry with a cute little face and big round eyes? If so, I will give you a cheezburger. But no, no money! You are a rich Kuwaiti!

    Don Veto -LOL – I want to be the bird on the wall and observe those conversations – the ones where you explain to your neighbors that is your land and they can’t dump on it anymore! Are they still hanging their carpets over your wall??

    Comment by intlxpatr | March 12, 2009 | Reply

  10. What about the rental market? I moved when the rent prices were at its peak!

    Comment by Akbar | March 13, 2009 | Reply

  11. I don’t know, Akbar. I think a lot of places are vacant; there seems to be a large supply chasing a lesser demand, but I don’t see any rents dropping yet.

    Comment by intlxpatr | March 13, 2009 | Reply

  12. Now they are putting their garbage bin on my pavement, and filling my bin and theirs. In case it is not enough, the rest of the garbage goes on my pavement. Someday I will do something about it.

    Comment by Don Veto | March 14, 2009 | Reply

  13. No! oh no! Oh, I would be livid!

    Comment by intlxpatr | March 14, 2009 | Reply


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