Kuwait Real Estate Transactions Hit KD 907.5 Million in Q2, KFH Reports

Kuwait Finance House (KFH) reported that the local real estate market continued its momentum in the second quarter of 2026, with transactions totaling 1,494 deals valued at KD 907.5 million. The report highlighted the sector's resilience as a key non-oil contributor, underpinned by a stable local economic environment, a strong banking sector, and persistent demand across all property types. While the overall value of transactions compiled monthly increased from the previous quarter, the average value per real estate transaction decreased to KD 607,000, marking a 16.1% year-on-year reduction and a notable 21.5% quarterly decline.

The report indicated a quarterly decrease in prices for most residential areas by the end of Q2, including several areas in the Capital Governorate, leading to a 0.1% average price drop in the Capital and Hawally governorates. Prices in most other areas remained stable. Conversely, the average price of investment real estate saw an accelerated increase of 1.6% quarter-on-quarter, up from 1.3% in Q1, with a 7% annual increase. Investment property prices rose across most governorates, driven by investors' desire to lease units for professional and commercial activities. Investment site prices increased 1.2% quarter-on-quarter, with 1.3% in Capital and Hawally, and a higher 2.7% in Ahmadi.

The average price per commercial meter across governorates rose by 0.2% from the previous quarter, maintaining stability in most areas while seeing slight increases in others. The annual increase rate for commercial property accelerated to 4.1% across governorates. The quarterly decline in the average industrial property price accelerated to 4.1%, compared to a 1.7% drop in Q1 2026.

Average prices per square meter were: KD 963 for private housing (down 0.3% from Q1), KD 1,871 for investment property (up 1.6% quarterly), KD 4,989 for commercial property (up 0.2% quarterly), KD 795 for industrial property, and KD 2,865 for artisanal property.

For investment apartment ownership, the average price per square meter for 70 and 95 square meter units rose 1.9% annually, reaching KD 917 across governorates. Capital recorded the highest at KD 1,154, followed by Mubarak Al-Kabeer (KD 1,091), Hawally (KD 1,052), Farwaniya (KD 796), and Ahmadi (KD 762).

Average private housing rent reached KD 679, a 5.3% annual decrease. Rents were KD 845 in Capital, KD 747 in Hawally, KD 537 in Farwaniya, KD 505 in Ahmadi, KD 637 in Mubarak Al-Kabeer (down 2.6% annually), and KD 450 in Jahra.

Average investment apartment rent was KD 350 across governorates, up 0.4% quarterly and 1.3% annually. Capital saw KD 377 (up 0.8%), Hawally KD 371 (up 1.9%), Farwaniya KD 343 (up 0.7%), Mubarak Al-Kabeer KD 360 (unchanged), Ahmadi KD 310 (up 2%), and Jahra KD 345 (up 3%).

Hamad Al-Hassawi, Executive Director of Real Estate Valuation at KFH, stated that private residential transactions represented 47% of total market activity in Q2, significantly up from 38.5% in Q1, positioning it as the leading segment. Investment real estate followed with 31.6% (up from 28.5% in Q1), while commercial transactions decreased to 12.4% (from 21% in Q1). Other categories constituted 8.9%, driven by agricultural nurseries (3.2%), warehouses (3%), and coastal strip properties (2.6%), with artisanal properties at 0.1%. Al-Hassawi noted that overall real estate transactions decreased by 11.4% from Q1 but were notably 15% higher year-on-year, according to data from the Registration and Documentation Department.