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84.6% occupancy rate in apartments; ‘Salmiya crowded with expats’

This post has been read 35446 times!

KUWAIT CITY, April 2: The number of investment properties, as of the end of 2021, reached 12,994 in various parts of Kuwait. These include 396,000 apartments, of which 61,000 are vacant, which means that the average occupancy rate is 84.6 percent, reports Al-Rai daily. According to a report issued by the Real Estate Union, Salmiya tops the areas of Kuwait in terms of the concentration of investment real estate, with the number of investment buildings reaching 2,911.

This means that Salmiya can be considered as the most crowded with expatriates. In second place is Hawally with 1,811 buildings. In third place is Jleeb Al-Shuyoukh area with 1,181 investment properties, and then Farwaniya in fourth with 1,152, followed by Khaitan in fifth with 882 properties. Mahboula came sixth with 799 buildings, followed by Mangaf with 743, Fahaheel with 578, Jabriya with 511, and then Jahra with 439 properties. Abu Halifa ranked 11th with 359 buildings, then Sabah Al-Salem with 315, Sharq with 313, Fintas with 305, Riggae with 254, Bneid Al-Gar with 198, Shaab with 131, Mirqab with 71, and finally Qibla with 41. In terms of the average monthly rent for all types of apartments, Dasman came at the top of the list with an average monthly rent of about KD 1,081, followed by Shaab with KD 512, then Sharq with KD 464, Jabriya with KD 352, Sabah Al-Salem with KD 338, and then Salmiya in the sixth place with KD 327. As for the areas with the lowest average monthly rent, Jleeb Al-Shuyoukh and Khaitan ranked first with an average of KD 210, followed by Abu Halifa with KD 240, and Farwaniya with KD 244.

According to a study conducted previously by the Real Estate Union, the occupancy rate of investment apartments in Kuwait is 84.6 percent, with about 335,100 apartments, in the year 2021. The occupancy rates are expected to drop to 82 percent in 2022 due to the additional supply that will enter the market. In 2024, the average rent rate in 2024 is likely to return to the level of 2020, but it will remain below the level of 2019. The study showed that the average rental values reached KD 4.5 per square meter in 2019, and KD 4.4 per square meter in 2021. The decline in the number of expats is one of the most important factors that can affect the rental values.

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