KUWAIT CITY, Oct 21: The falling rents of apartments can no longer be considered as news; it is indisputable based on several facts.
The new development is the reduction expected by the real-estate experts in the next two months to the extent that some owners could offer reduction of their residential units at a rate of KD 5 per week until the units are occupied, reports Al-Rai daily.
Former member of the realestate clearinghouse Omar Al- Huwaidi stressed that some new building owners in the market are waiting to see what the coming months bring, affirming that if their real-estates are not rented out due to surplus supply compared to the demand, they will resort to accepting the conditions set by ministries such as Ministry of Finance which has announced more than once its need for leasing residential or commercial buildings in the Capital, Hawally, Farwaniya and Mubarak Al Kabeer governorates.
He said majority of the owners are unwilling to lease their buildings on annual contracts because the value will be less than the usual market value in their point of view.
Real-estate experts forecast that building owner’s adamancy to cling to their desired prices will vanish after hundreds of expatriate teachers leave their huge apartments to live in smaller and cheaper ones or prefer to stay as bachelor to manage the cost of living in Kuwait.