Kuwait Finance House: KD 907.5 million in real estate transactions during the second quarter

The Kuwaiti real estate sector maintained its position as one of the most prominent non-oil sectors during the second quarter of 2026, supported by the stability of the local economic environment, the strength of the banking sector, and continued demand for various property types.

Data from the second quarter of 2026 showed sustained momentum, with 1,494 real estate transactions valued at a total of 907.5 million dinars. Although this represented an 11.4% decline from the first quarter of 2026, the number of transactions rose by 12.8% compared to the same period last year. The residential sector remained the most active in terms of both transaction value and volume. Meanwhile, coastal property and warehouse categories contributed to boosting the total trading value, driven by an increase in the value of transactions recorded in these segments.

This performance was bolstered by the growth of non-oil economic activity, continued capital expenditure, and government projects under the National Development Plan and Kuwait Vision 2035, alongside strong banking liquidity and the growth of real estate credit. Despite the market being affected by external factors such as geopolitical tensions, unprecedented fluctuations in oil prices, and anticipation of global monetary policy trajectories, the real estate sector demonstrated clear resilience due to local demand and improved investor confidence. The positive future outlook was further strengthened by potential legislative reforms, particularly the development of real estate financing and discussions regarding a mortgage law, which are expected to support continued real estate activity in the coming period on a more balanced path.

Trading values remained at an average level, with a 14.3% decline in the second quarter of 2026 compared to the high levels recorded in the same period last year. Coastal properties and warehouses continued to witness notable activity, while there was a limited rise in the value of private residential transactions. There was also a slight increase in demand for various property types, reflected in a 2.1% year-on-year rise in the number of transactions, driven by a modest increase in demand for private residential properties. In contrast, demand for commercial properties and warehouses doubled, while demand for investment properties and other real estate sectors declined on a year-on-year basis.

Eng. Hamad Al-Husawi, Executive Director of Real Estate Valuation at the Kuwait Finance House, stated that real estate sector transactions during the second quarter of this year highlighted the importance of the private residential sector in driving market activity and its significant standing among traders and in overall trading volumes, accounting for nearly half of the total transaction volume.

Al-Husawi noted in a press statement that private residential transactions accounted for 47% of total real estate transactions, a notable increase from the 38.5% share recorded in the previous quarter, placing it first in the second quarter of 2026. Investment real estate remained in second place among real estate sectors, holding a 31.6% share of transactions in the second quarter of 2026, up from 28.5% in the first quarter of 2026. Commercial real estate transactions ranked third, with a share that decreased to 12.4% in the second quarter, compared to 21.0% of total transactions in the first quarter of 2026.

Transactions in other real estate categories accounted for 8.9% of total trading, driven by activity in the agricultural nurseries category, which alone represented 3.2% of total transactions. This was followed by warehouse real estate transactions, which held a 3% share, while coastal property transactions accounted for approximately 2.6%. Craft real estate transactions represented 0.1% of the total value of real estate transactions in the second quarter of 2026.

In the same context, the report indicated that the value of transactions accumulated on a monthly basis during the second quarter of 2026 rose compared to the previous quarter, driven by an increase in the value of private residential transactions to approximately 426.6 million dinars in the second quarter of 2026, an 8.2% quarter-on-quarter increase, with demand rising to 1,106 transactions, a 23.3% increase for the same period.

Meanwhile, investment real estate transactions declined to 287.1 million dinars in the second quarter of 2026, a 1.6% decrease, with a quarter-on-quarter drop in demand, recording 328 transactions, a 1.8% decline. The value of commercial real estate transactions also decreased, recording 112.9 million dinars, a 47.4% quarter-on-quarter drop, despite an increase in demand for this property category to 45 transactions, a 7.1% rise.

The value of coastal property transactions increased to approximately 23.5 million dinars through four transactions in the second quarter of 2026, more than doubling the value recorded in the first quarter of 2026. Meanwhile, the value of craft real estate transactions decreased to 700,000 dinars, while the warehouse category reached an exceptional level, recording 27.5 million dinars through eight transactions in the second quarter of 2026.

Hamad Al-Husawi affirmed that property valuation represents a crucial aspect of real estate activity, encompassing multiple levels and contributing to the smooth flow of financing operations and the regulation of market transactions on the basis of transparency, professional considerations, and fair assessments that take into account ground-level realities and developments. He emphasized the distinctive human capabilities and professionalism of the property valuation experts at Kuwait Finance House (KFH), which consistently reinforce the high level of trust that clients of all kinds place in the property valuation services it delivers. This is further bolstered by the robust regulatory framework that yields top-tier performance in the market. He added that these factors have established KFH as the preferred entity for property valuation across all sectors, leveraging its long-standing real estate expertise, reliability, neutrality, and transparency. As an accredited valuation institution, KFH maintains a comprehensive database and a multidisciplinary technical team—comprising engineering, legal, and accounting specialists—whose work is grounded in in-depth studies, real estate reports, and continuous market monitoring and trend analysis.