18/05/2026
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18/05/2026
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KUWAIT CITY, May 18: Real estate transactions in the second week of May showed mixed performance, during which the number of transactions increased by 15 percent compared to the first week, driven by the increased activity in the residential sector, according to the weekly statistics released by the Real Estate Registration and Documentation Departments at the Ministry of Justice.
However, the total value of transactions declined by 11.86 percent due to the sharp drop in commercial real estate deals. The real estate market recorded 138 transactions from May 10-14, with a total value of KD62.63 million, compared to 120 transactions valued at KD71.06 million in the first week of the month. The residential sector continued its positive performance, leading market activity in the second week and benefiting from sustained demand for private housing and residential properties.
The number of residential transactions increased to 103, valued at KD36.6 million, compared to 83 transactions valued at KD27.6 million in the first week -- 24 percent increase in the number of transactions and 32 percent increase in value.
The aforementioned figures revealed improvement in the appetite for purchasing private housing in spite of the continued caution related to high financing costs and anticipation of new regulatory or legislative changes. This performance indicates that the residential sector remains attractive, as it is the most closely linked to actual demand and direct use, compared to other real estate sectors that are more affected by investment and liquidity fluctuations. The investment sector witnessed a slight decline in both the number and value of transactions.
Total trading volume reached 32 deals worth KD24.78 million, compared to 34 deals worth KD28.46 million in the previous week -- 5.8 percent decrease in the number of deals and 12.9 percent decrease in trading value. It reflects continuous investor caution, considering the regulatory pressure and geopolitical changes related to financing and borrowing costs.
Despite this decline, the investment sector remains resilient compared to other sectors due to its reliance on operational and rental returns, which provide more flexibility in facing market fluctuations. The commercial sector experienced the most significant decline, with its trading value plummeting by 98 percent and the number of transactions by 33.3 percent.
Only two transactions were recorded with a total value of KD266,000, compared to three transactions worth KD15 million in the first week. It indicates continuation of less activity in this sector, which is highly sensitive to economic and legislative conditions.
The decline is also attributed to the increased financing cost and decreased risk appetite among investors, particularly the large transactions, following the execution of high-value deals in the previous week. Regarding properties located along the coastal strip, one transaction valued at KD990,000 was recorded, compared to no transaction in the first week – a manifestation of selective demand for coastal properties, considering that the number of deals is limited.
By Marwa Al-Bahrawi Al-Seyassah/Arab Times Staff
