29/08/2024
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29/08/2024
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KUWAIT CITY, Aug 29: Property managers have observed a significant increase in demand for short-term apartment rentals, particularly for one-month stays, as the number of Gulf tourists visiting Kuwait has risen. The recent easing of visit visa restrictions and the launch of new projects in the country are expected to further boost the demand for hotel apartments.
Mahmoud Al-Ruby, CEO of Sara Plaza and Sara Palace hotels, reported that occupancy rates reached 70% for both long- and short-term reservations before the reopening of visit visas. This figure rose to 85% following the visa changes and the inclusion of family visits.
Al-Ruby noted that prices have surged in response to the growing demand. Currently, the rental price for a one-bedroom apartment with a living room is 560 dinars, while a studio costs 350 dinars—an increase of approximately 10% compared to earlier this year. He anticipates further demand growth as Kuwait's weather improves and residents return from summer vacations.
Additionally, demand has increased from companies and hospitals that are bringing in workers on commercial entry visas. Al-Ruby also highlighted the strong influx of tourists from Saudi Arabia, followed by Bahrain, Qatar, the UAE, and Oman, indicating a return to pre-pandemic levels.
Meanwhile, Muhammad Al-Shazly, Director of Public Relations and Marketing at Kuwait Continental Hotels Group, emphasized that the reopening of family and commercial visit visas has revitalized the hotel apartment sector, which had struggled during the COVID-19 pandemic. Occupancy rates have risen by about 10% since operations resumed. However, Al-Shazly noted that stringent visa regulations, particularly those requiring an invitation letter from a Kuwaiti company and a university degree translated into Arabic, continue to limit growth. He urged for more streamlined procedures, citing that many international businessmen were unable to visit Kuwait due to these stringent requirements.
Al-Shazly also pointed out that the rise of furnished apartments and subletting has significantly impacted hotel apartments, as they offer more affordable options. The daily rates for a one-bedroom apartment with a living room range from 35 to 65 dinars, while a studio ranges from 18 to 30 dinars. He believes that further easing of visa regulations, extending visa durations, and initiating large projects will contribute to increased demand for hotel apartments, revitalizing this long-suffering sector.
Subletting Gains Momentum
Sources indicated that many residents who brought their families to Kuwait on visit visas have been actively seeking affordable housing options, fueling the demand for subletting. Some residents even re-lease their apartments during vacation periods to save on rent while they travel, offering visitors more budget-friendly rental options.
