"Al-Shal": Real estate market liquidity down 13.3% in eight months

The latest data available from the Ministry of Justice – Real Estate Registration and Notarization Department – (excluding artisanal activities and the coastal strip system) indicate a decline in real estate market liquidity in August 2026 compared to July 2026. Total transaction value for August reached approximately KWD 228.1 million, a decrease of 42.5 percent from July’s liquidity level of approximately KWD 397.1 million, and 51.7 percent lower than August 2025, when it stood at approximately KWD 472.2 million.

According to Al-Shal’s analysis of the data, the number of transactions in August reached 459. Al-Ahmadi Governorate recorded the highest number with 206 transactions, representing approximately 44.9 percent of the total, followed by Hawally Governorate with 76 transactions, accounting for approximately 16.6 percent. Al-Mubarak Al-Kabir Governorate recorded the lowest number with 31 transactions, representing approximately 6.8 percent.

The transaction value for the private residential sector reached approximately KWD 116.1 million, down approximately 30.9 percent from July, when it stood at approximately KWD 168 million. Its contribution to total real estate transaction value rose to approximately 50.9 percent, compared to 42.3 percent in July. The monthly average transaction value for the private residential sector over the last 12 months was approximately KWD 151 million, meaning August’s transaction value was 23.1 percent below the average. The number of transactions in this sector was 324, compared to 418 in July, resulting in an average transaction value of approximately KWD 358,000, down from approximately KWD 402,000 in July, a decline of approximately 10.8 percent.

The transaction value for the investment residential sector reached approximately KWD 92 million, a decrease of approximately 32.9 percent from July, when it stood at approximately KWD 137.1 million. Its contribution to total liquidity rose to approximately 40.3 percent, compared to 34.5 percent in July. The monthly average transaction value for the investment residential sector over the last 12 months was approximately KWD 113.6 million, meaning August’s transaction value was 18.9 percent below the 12-month average.

The number of transactions in this sector in August was 134, compared to 133 in July, resulting in an average transaction value for the investment residential sector of approximately KWD 687,000, compared to approximately KWD 1 million in July, a decline of approximately 33.4 percent.

The transaction value for the commercial sector declined to approximately KWD 20 million, a decrease of 77.8 percent from July, when it stood at approximately KWD 90.2 million. Its contribution to total real estate transaction value was approximately 8.8 percent, compared to 22.7 percent in July. The average transaction value for the commercial sector over the last 12 months was approximately KWD 66.8 million, meaning August’s transaction value was approximately 70.0 percent below the 12-month average.

The number of transactions in this sector was one, compared to 17 in July, resulting in an average transaction value for August of approximately KWD 20 million, compared to approximately KWD 5.3 million in July, an increase of approximately 277.2 percent.

Comparing total August transactions with those of the same month last year (August 2025), we observe a decline from approximately KWD 472.2 million to approximately KWD 228.1 million, a decrease of 51.7 percent, as previously noted. This decline included a 91.7 percent drop in commercial sector liquidity, a 12.9 percent decrease in private residential sector liquidity, and a 6.9 percent decrease in investment residential sector liquidity.

When comparing the cumulative trading value from the beginning of the current year through the end of August—i.e., the first eight months of the year—with the corresponding period in 2025, we observe a decline in total real estate market liquidity from approximately 2.770 billion dinars to about 2.402 billion dinars, a decrease of 13.3 percent. If we assume that market liquidity remains at this level for the remainder of the year (four months), the total trading value would reach approximately 3.603 billion dinars, which is 18.5 percent lower than the previous year’s trading volume of about 4.419 billion dinars.