Kuwait Finance House: KD 907.5 million in local real estate trading volume in the second quarter of 2026

Kuwait City, August 10 (KUNA) -- Kuwait Finance House (KFH) said on Monday that the value of real estate transactions reached 907.5 million Kuwaiti dinars (approximately $2.09 billion) in the second quarter of this year, representing a 11.4 percent decline compared to the first quarter of 2026.

In a report on the local real estate market for the second quarter of this year, KFH stated that the sector maintained its position as one of the most prominent non-oil sectors, supported by the stability of the local economic environment, the strength of the banking sector, and continued demand for various types of real estate.

It clarified that the residential real estate sector remained the most active in the second quarter in terms of both transaction value and volume. Meanwhile, properties located along the coastal strip and warehouse categories contributed to enhancing the total transaction value, driven by an increase in the value of transactions recorded in these segments.

This performance was supported by the growth of non-oil activities, continued capital expenditure, and government projects under the development plan and Kuwait Vision 2035, alongside strong banking liquidity and growth in real estate credit, despite the market being affected by external factors such as geopolitical tensions, unprecedented fluctuations in oil prices, and anticipation of global monetary policy trajectories.

The report emphasized that the real estate sector demonstrated clear resilience due to local demand and improved investor confidence. It noted that the positive future outlook was bolstered by potential legislative reforms, particularly the development of mortgage financing and discussions regarding a mortgage law, which would support the continuity of real estate activity in the coming period on a more balanced path.

It added that investment real estate transactions declined to 287.1 million dinars (approximately $947 million) in the mentioned quarter, a decrease of 1.6 percent. Meanwhile, the value of transactions in the commercial real estate category fell by 47.4 percent on a quarterly basis, recording 112.9 million dinars (approximately $327.5 million), despite an increase in demand volume for this category to 45 transactions, up by 7.1 percent.

It pointed out that the value of transactions for coastal strip properties rose to approximately 23.5 million dinars (around $77.5 million) through four transactions in the second quarter, more than doubling the value recorded in the first quarter of 2026. Meanwhile, the value of transactions in the artisanal real estate category declined to 700,000 dinars (approximately $2.3 million), while the warehouse category reached an exceptional level, recording 27.5 million dinars (approximately $90.7 million) through eight transactions in the second quarter of 2026.

The KFH report indicated that the average total transaction value index declined to 607,000 dinars (approximately $200.3 thousand) in the second quarter of 2026, down by 16.1 percent on an annual basis and by a notable 21.5 percent on a quarterly basis. (End) F.N.K. / H.A.