Kuwait Finance House: Investment property occupancy rates stabilize between 88% and 92%

A report by Kuwait Finance House on the local real estate market during the second quarter of 2026, covering occupancy rates and rents, stated that occupancy rates for investment properties remained stable compared to previous levels across all property types, registering between 88% and 92%. Regarding private residential rents, the report noted that average rental values in the second quarter of 2026 experienced a slight annual decline in certain private residential areas across the governorates. Amid the limited downturn in private residential property prices, a slight decrease in rental values was observed in most locations within this property category. Furthermore, the expectation of housing allocation encouraged a significant segment of citizens to rent out their private residences, thereby increasing supply. This occurred alongside strong demand in areas close to workplaces and shopping centers, which stimulated tenant demand for this category of properties.

The report indicated that the average rental value for a 400-square-meter private residence declined across the governorates, reaching 679 dinars by the end of the second quarter of 2026. This represented a slight quarterly decrease of 1.9%, as well as a 3.1% annual decline. In the Capital Governorate, the average reached 845 dinars, reflecting an annual decrease of 0.9%, while in Hawalli Governorate, it stood at 747 dinars, marking a limited annual decrease of 3.5%. In Farwaniya Governorate, the rental value reached 537 dinars, down 5.2% annually. In Mubarak Al-Kabeer Governorate, the average rental value for the same area was 637 dinars, a 2.6% annual decrease. The average rental value in Ahmadi Governorate reached 505 dinars, while in Al-Jahra Governorate, the average price was 450 dinars.

The report further stated that the average rental value for apartments in investment property areas across the governorates reached approximately 350 dinars by the end of the second quarter of 2026, showing a slight quarterly increase of 0.4% and an annual increase of 1.3%. Annual increases in average rental values varied by area and governorate. In the Capital Governorate, the average rent was 377 dinars, up 0.8% annually. In Hawalli Governorate, it reached 371 dinars, an annual increase of 1.9%. In Farwaniya Governorate, the rental value was 343 dinars, up 0.7% annually. In Ahmadi Governorate, the average rent was approximately 310 dinars, representing a 2.0% annual increase. In Mubarak Al-Kabeer Governorate, the average rent stood at 360 dinars, with no annual change. In Al-Jahra Governorate, the average was 345 dinars, up 3.0% annually.

The report confirmed that the average rent for commercial real estate per square meter in a mezzanine reaches 13.3 dinars by the end of the second quarter of 2026 across the governorates, rising to 16.5 dinars in some areas of the Capital Governorate. In the commercial areas of Hawalli, the average stands at 14 dinars, while it reaches 15 dinars in Salmiya. Meanwhile, the average price in Al-Fahaheel areas is 13.8 dinars, dropping to 12 dinars in Al-Maqwa, and registering 15 dinars in Farwaniya.

Rental values for offices vary according to location, finishing quality, and the services provided to tenants and building users. The average stands at 9.3 dinars per square meter by the end of the second quarter of 2026 across the governorates. In Kuwait City, within the Capital Governorate, the average rent reaches 13.5 dinars, while it hits 9 dinars in Hawalli, 9.3 dinars in Salmiya, 8.5 dinars in Farwaniya, and 8.5 dinars per square meter in Al-Fahaheel by the end of the second quarter of 2026.

Industrial Units

The average industrial rental price per square meter reaches 5 dinars for a basement in the Shuwaikh Industrial Area by the end of the second quarter of 2026, while it registers 26.5 dinars for the ground floor and 4.0 dinars for the mezzanine. In Al-Rai, the average for a basement is 4.5 dinars, reaching 26.5 dinars for the ground floor and 4.5 dinars for the mezzanine. Prices differ based on locations and other features and area sizes. The average rental price per square meter in Al-Aridiya (Warehouses) is 4.5 dinars for a basement or mezzanine, and 8 dinars for the ground floor by the end of the second quarter of 2026. In contrast, in Al-Aridiya (Crafts), the rate is 8 dinars for a basement, 24.8 dinars for the ground floor, and 5.5 dinars for the mezzanine. Additionally, the rate in East Ahmadi reaches 3.5 dinars for a basement or mezzanine, and 15.3 dinars for the ground floor. In Al-Fahaheel Industrial Area, the rental value for a basement reaches 4 dinars per square meter by the end of the second quarter of 2026, rising to 22 dinars for the ground floor, while reaching 4.5 dinars for the mezzanine.