Kuwaitization policy, hike in service charges blamed
KUWAIT CITY, Feb 3: Secretary of Kuwait Real Estate Association Qais Al-Ghanem affirmed that the real estate market in the country has been seriously affected by the departure of expatriates, indicating that they had warned about this crisis last year, reports Al-Rai daily.
He said he is expecting the trend of expatriates’ departure to increase in June 2018, as they are either searching for better opportunities in other destinations or choosing to return to their countries of origin. Al-Ghanem explained that the recent pressures imposed on expatriates resulted in a large number of vacant flats especially in the investment residential sector.
The Kuwaitization policy, which is aimed at terminating the contracts of expatriates in the public sector and increasing the charges of services offered to them, and the announcement about a new tax system have contributed to the crisis.
A large number of expatriates are considering sending their families back to their countries of origin but keeping their residency valid, and choosing to stay in Kuwait as bachelors.
This trend will further worsen the current situation of the real estate sector. He said he is expecting the rents to drop after the decisions concerning expatriates are announced.
Al-Ghanem indicated that this crisis has not only negatively impacted the real estate sector but it has also badly affected the economic circulation, affirming that the real estate sector is one of the basic pillars of the economy