Kuwait Finance House: 47% of real estate transactions accounted for by private housing

A report by Kuwait Finance House on the local real estate market for the second quarter of 2026 indicated that the average price per square meter of private residential property in the Capital Governorate reached 1,318 dinars by the end of Q2 2026. The price for investment properties rose to 2,738 dinars, while commercial real estate in the governorate saw an average price of 9,188 dinars per square meter.

In Hawalli Governorate, the average price per square meter for private residential property stood at approximately 1,028 dinars, while investment properties reached 1,978 dinars and commercial properties recorded 4,061 dinars. In Farwaniya Governorate, the average price for private residential property was 693 dinars, with investment properties averaging 1,716 dinars and commercial properties reaching 2,813 dinars.

The report analyzed transactions across real estate sectors, noting that private residential property accounted for 47% of total real estate transactions, a significant increase from 38.5% in the previous quarter, thereby securing the top position in Q2 2026. Investment real estate remained in second place, capturing 31.6% of transactions in Q2 2026, up from 28.5% in Q1 2026. Commercial real estate followed in third place, with its share declining to 12.4% in Q2, compared to 21% of total transactions, while Q1 2026 had seen a 20.2% share. Other real estate categories accounted for 8.9% of transactions, driven by activity in the agricultural nurseries category, which alone represented 3.2% of total transactions. Warehouse transactions followed with a 3% share, coastal strip transactions accounted for approximately 2.6%, and artisanal real estate transactions made up just 0.1% of the total value of real estate transactions in Q2 2026.

Total real estate transaction value reached 907.5 million dinars during Q2 2026, according to data and indicators from the Registration and Documentation Department, which are compiled monthly by the Ministry of Justice. This represents an 11.4% decrease from the high level recorded in Q1 2026, but remains significantly higher by 15% on a year-on-year basis.

Kuwait Finance House stated that the average total value of a real estate transaction index stood at 607,000 dinars by the end of Q2 2026, marking a 21.5% decline from Q1 2026 and a 16.1% drop on a year-on-year basis.

The total number of transactions, compiled on a monthly basis, reached 1,494 deals in Q2 2026, a 12.8% increase from Q1 2026, and a 2.1% rise on a year-on-year basis. This growth was driven by an annual increase in the number of transactions for private residential and commercial properties. Conversely, the number of registered transactions for investment properties declined, and demand for coastal strip properties fell on a year-on-year basis, although there was notable activity in the warehouse category. Additionally, the agricultural nurseries category experienced limited transaction volume during Q2 2026.

The average transaction value for private residential property was recorded at 385,700 dinars, down 12.2% from the high level in Q1 2026, and 2.3% lower on a year-on-year basis. The number of transactions in the private residential sector reached 1,106 deals in Q2 2026, up 23.3% from the low of 897 deals in Q1, and 4.4% higher on a year-on-year basis.

Transaction value for investment properties amounted to 287.1 million dinars in Q2 2026, a 1.6% decrease from the high value in Q1 2026, and significantly lower by 40.5% on a year-on-year basis. The average transaction value for investment properties improved, reaching 875.3 dinars in Q2 2026, a slight increase of 0.2% from Q1 2026, which had been the lowest level in nearly two years. However, the average transaction value index fell by 36.3% on a year-on-year basis.

The number of registered transactions for investment properties stood at 328 deals in Q2 2026, a 1.8% decrease from Q1 2026, and a 6.6% decline on a year-on-year basis.