Al-Husseini: 907.5 Million Dinars in Total Real Estate Transactions in the Second Quarter

Real estate researcher Abdulrahman Al-Husseini described the current summer season as “exceptionally unique” within the Kuwaiti real estate market, noting that trading activity during July and August reflects sustained momentum despite geopolitical conditions and challenges posed by the current phase.

Al-Husseini stated that the real estate market has demonstrated a clear ability to adapt to changes in 2026 so far, pointing out that total real estate transactions reached approximately 907.5 million dinars during the second quarter of the year, through 1,494 deals, representing a 15 percent annual increase. This underscores the continued presence of liquidity and demand despite the caution induced by regional developments.

He added that July recorded transactions worth approximately 397.1 million dinars through 569 deals, marking a 23.7 percent increase over June, although trading volume was about 10.3 percent lower compared to July 2025. He considered these figures evidence that the market has not entered a halt phase, but rather experienced a reordering of investment priorities in light of surrounding circumstances.

He noted that August’s figures were close to July’s levels, with transactions reaching approximately 398 million dinars across about 574 deals. He viewed this as a significant indicator of the market’s ability to maintain activity even during the summer season, which typically witnesses a slowdown in real estate movement.

Al-Husseini explained that the impact of geopolitical conditions was not uniform across different sectors, noting that the commercial and warehouse sectors were the most affected due to their direct link to economic activity and business operations. He pointed out that the commercial sector’s share of total transactions declined to 12.4 percent in the second quarter, compared to approximately 21 percent in the first quarter.

Conversely, he clarified that the residential sector was the most active and dynamic during the recent period, a fact confirmed by transaction data. Private residential properties led July’s transactions with a value of approximately 168 million dinars through 418 deals, while their transaction value rose by 17.6 percent compared to July 2025, indicating sustained demand for residential real estate despite the exceptional conditions the market has experienced.

He added that this activity continued into August, which saw 574 deals totaling nearly 398 million dinars, with the residential sector accounting for approximately 66 percent of the total number of deals. This reaffirmed its leading role in real estate trading, reflecting genuine and ongoing demand for private housing compared to other sectors.

He emphasized that the continued activity in the residential sector during the summer months, which are typically characterized by a decline in real estate activity, is one of the most prominent indicators of the market’s unique performance in the summer of 2026. He added that residential demand appears more resilient to geopolitical changes, as it is largely driven by actual needs rather than solely by short-term investment decisions.

Al-Husseini stressed that a notable trend in 2026 has been the continued execution of major deals, both by Kuwaiti companies within the local market and through investments and transactions executed by Kuwaiti companies outside Kuwait. He considered the persistence of these deals amid current conditions as evidence of available liquidity and long-term investment decisions, noting that large companies have not treated current tensions as sufficient grounds for a complete exit from the market.

He observed that the current landscape shares some similarities with the period the market experienced during the coronavirus pandemic, particularly in terms of anticipation, caution, and risk reassessment. However, he stressed that the present situation differs in the nature of the crisis and its causes, emphasizing that the comparison lies primarily in investor behavior rather than in the underlying economic conditions.

Al-Husseini stressed that the market today is not experiencing stagnation, but rather a phase of greater selectivity, as investors have become more careful in choosing assets, their locations, returns, and their ability to retain value. This explains why high-quality transactions continue alongside a decline in activity in certain sectors.

He said that reading the real estate market should not be limited to the total value of transactions, but must also consider the quality of deals, their distribution across sectors, and the size of major transactions. He emphasized that the continuation of trading at levels close to those in July during August, despite regional conditions and the summer season, is an indicator of a degree of resilience and capacity to absorb shocks.