"Kuwait Finance House": 1 Billion Dinars in Real Estate Transactions in the Third Quarter

Data for the third quarter of 2026 showed that the value of real estate transactions rose to approximately 1 billion Kuwaiti dinars, an increase of 12.4% compared to the second quarter of the same year, while the number of deals reached 1,502, a slight decrease of 0.5% during the same period.

According to a report issued by Kuwait Finance House, private residential real estate remained the most active sector in terms of value and number of transactions. Meanwhile, the improvement in the trading of investment, commercial, and artisanal real estate supported the total transaction value, which continued to be bolstered by the stability of the local economic environment, the strength of the banking sector, and sustained demand across various real estate categories. This sector remains one of the most prominent non-oil sectors of the Kuwaiti economy.

The growth in capital expenditure and government projects under the development plan and Kuwait Vision 2035, alongside strong banking liquidity and the growth of real estate credit, contributed to the improvement and rise in transaction values during the third quarter, despite external factors such as geopolitical tensions, unprecedented fluctuations in oil prices, and anticipation regarding the global monetary policy trajectory. The real estate sector demonstrated clear resilience thanks to local demand and improved investor confidence.

The positive future outlook was further strengthened by recent legislative reforms, including the Real Estate Financing Law, for which its executive regulations are awaited, along with other laws such as the Sukuk Law. These measures support the economy and contribute to sustaining real estate activity in the coming period on a more balanced path. The future outlook remains linked to the pace of implementing government projects and residential cities, developments in real estate financing, liquidity and credit levels, as well as the impact of oil prices, geopolitical conditions, and the global monetary policy trajectory.

On an annual basis, the value of real estate transactions in the third quarter of 2026 decreased by 20.0% compared to the third quarter of 2025, while the number of transactions declined by 4.0%. Performance varied across sectors: the value of private residential transactions rose by 15.0% and artisanal real estate by 120.6%, while investment real estate transactions fell by 11.7%, commercial by 58.5%, waterfront by 26.2%, and warehouses by 90.5%. Regarding the number of transactions, private residential deals increased by 6.9%, while investment real estate transactions dropped by 17.7%, commercial by 57.9%, waterfront by 33.3%, artisanal by 66.7%, and warehouses by 87.5%.

The value of private residential real estate transactions rose to 455.3 million dinars in the third quarter of 2026, an increase of 6.7% on a quarterly basis, with the number of transactions remaining stable at 1,106. Investment real estate transactions also increased to 359.1 million dinars, up by 25.1%, with the number of deals rising to 359, an increase of 9.5%. Commercial real estate recorded transactions valued at 183.1 million dinars, a 62.2% increase from the previous quarter, despite a decline in the number of transactions to 32, down by 28.9%.

Conversely, waterfront transactions fell to 2.3 million dinars across two deals, and warehouse transactions declined to 1.8 million dinars through a single deal. In contrast, artisanal real estate transactions rose to 18.2 million dinars through two deals. The agricultural nursery category recorded no transactions during the quarter. The average value of total real estate transactions stood at approximately 679,000 dinars in the third quarter of 2026, up by 11.8% from the second quarter of 2026, but remained roughly 15.4% lower than its level in the third quarter of 2025.

Private residential property prices declined by 0.5% in the third quarter of 2026 compared to the previous quarter, recording an annual decrease of 4.8%. Meanwhile, investment property prices rose by 1.3% on a quarterly basis, reflecting an annual increase of 6.1%. Commercial property prices remained stable with no significant quarterly change, while rising 1.8% on an annual basis.

Property prices in chalet areas fell by 2.1% in the third quarter of 2026 compared to the previous quarter, amid a drop in average prices at most locations along the coastal strip. Additionally, the average price in the Sabah Al-Ahmed Al-Jaleel area remained stable in the third quarter relative to the previous quarter. According to data from the Registration and Documentation Department at the Ministry of Justice, this area is classified as coastal and chalet-type residential property and remains highly sought after, as citizens seek larger spaces and more recreational environments.