KUWAIT CITY, Jan 24: The latest Numbeo report revealed that Kuwait City ranked second among the most expensive Arab cities in terms of purchasing residential apartments in 2026 -- at a price of KD1,633 per square meter in the city center. This is a 10.9 percent decrease compared to 2025, when the price was around KD1,833 per square meter. Outside the city center, the price per square meter reached KD816.7 -- 11.3 percent lower than the previous year’s KD921.

According to the specialized real estate price index, the average monthly rent in Kuwait for a one-bedroom apartment in the city center amounted to KD258.33, compared to the KD188.5 average outside the city center. A three-bedroom apartment in the city center averaged KD560.13, compared to KD405.55 outside the city center. The ranking of Kuwait as the second most expensive city could be attributed to a combination of structural and economic factors, such as limited supply of housing in the city center, coupled with stable demand, particularly for apartments in areas near the business and service centers. The high cost of land within the city also contributes to the high prices, compared to other Arab cities.

These rental levels indicate the resilience of demand in the Kuwaiti market. Despite high prices, apartments in the city center remain attractive due to demand from middle and upper-income residents. On the other hand, the big price difference between the city center and outside it suggests a growing trend towards outlying areas as a more affordable alternative, which may boost real estate activity in those areas in the coming period. Dubai topped the list by a huge margin, with the price per square meter in the city center reaching $7,172, making it the most expensive destination for real estate investment in the Arab world.