KUWAIT CITY, Sept 30: In an emerging trend aimed at circumventing Law No. 126 of 2023, which combats the monopoly of vacant lands, some landowners and merchants have begun constructing one-story buildings on their vacant plots. These developments, built in areas where surrounding buildings often rise two or three stories, are designed to evade the annual fees set to take effect in early 2026 under the new law, reports Al-Seyassah Daily. While this tactic appears to be a legal form of land use, it is, in reality, a means to bypass the law and avoid penalties imposed on undeveloped land. In one case observed by the Al-Seyassah daily, a landowner constructed 80 small, one-floor houses, each containing only two rooms, a kitchen, and a bathroom.

These minimalist structures are fenced off, raising concerns about how they are permitted and how they will be used. Real estate experts explained that the Anti-Land Monopoly Law was enacted to discourage hoarding land for speculative purposes and encourage development. By imposing annual fees on undeveloped land, the law aims to increase available residential properties. However, some landowners have exploited loopholes by building minimal structures, giving the impression of compliance while postponing full development to avoid fees. The daily spoke to several experts about the issue. Some observers noted that these circumvention tactics not only undermine the intent of the law but also disrupt the aesthetic appeal and harmony of neighborhoods, further contributing to the housing crisis in Kuwait. The manipulation of land development regulations, coupled with speculative practices, continues to delay the availability of much-needed housing in a market already struggling with a shortage of residential land. Real estate expert Nasser Al-Arbash has urged amendments to key provisions of Law No. 126 of 2023, aimed at combating land hoarding, to prevent exploitation and close loopholes.

In a statement to the daily, Al-Arbash emphasized the need for the law to cover abandoned, uninhabitable, or unused homes. He suggested that properties should be deemed abandoned if they have not consumed electricity or water at standard levels for over five years and should be treated as vacant land, subject to the law’s fees. Al-Arbash proposed revising Article 4, which currently requires that the building area not exceed 50 percent of the plot, to stipulate that it must be no less than 50 percent of the total plot size. Additionally, he recommended adding a clause to treat properties as vacant land if electricity and water consumption have ceased for five consecutive years or more.