Kuwait Finance House: 1 Billion Dinars in Local Real Estate Trading Volume in the Third Quarter

Kuwait City, Nov 5 (KUNA) -- A report by Kuwait Finance House (KFH) showed an increase in local real estate transaction values in the third quarter of this year, reaching 1 billion Kuwaiti dinars (approximately $3.3 billion), up 12.4 percent from the second quarter but down 20 percent year-on-year.

In its report on the local real estate market for the third quarter, KFH stated that the number of deals reached 1,502 during the period, noting that private residential properties were the most active segment in terms of value and number of transactions. It added that improved trading in investment, commercial, and artisanal real estate supported the total transaction value, bolstered by a stable economic environment and a robust banking sector.

The report emphasized that growth in capital expenditure and government projects under the development plan, alongside strong banking liquidity and growth in real estate credit, contributed to the rise in transaction values during the period, despite external factors such as geopolitical tensions, oil price volatility, and anticipation of global monetary policy directions.

It further noted that the real estate sector demonstrated clear resilience due to local demand, improved investor confidence, and a positive future outlook driven by recent legislative reforms, including the Real Estate Financing Law and the Sukuk Law.

The report pointed out that the number of transactions in the third quarter declined by 4 percent year-on-year, with variations across sectors. Specifically, the value of private residential transactions rose by 15 percent, and artisanal real estate by 120.6 percent, while investment real estate transactions fell by 11.7 percent, commercial real estate by 58.5 percent, coastal properties by 26.2 percent, and warehouses by 90.5 percent.

It clarified that the value of private residential transactions rose to 455.3 million dinars (approximately $1.5 billion) in the third quarter of 2026, up 6.7 percent quarter-on-quarter, with the number of transactions stabilizing at 1,106. Meanwhile, investment real estate transactions reached 359 million dinars (approximately $1.1 billion), and commercial real estate recorded transactions valued at 183 million dinars (approximately $603.9 million).

The report stated that the average value of a real estate transaction stood at around 679,000 dinars (approximately $2.2 million), up 11.8 percent from the second quarter, but remained 15.4 percent below its level in the third quarter of 2025.

It confirmed that private residential property prices declined by 0.5 percent at the end of the third quarter compared to the second quarter of 2026, with an annual price decrease of 4.8 percent. In contrast, investment real estate prices rose by 1.3 percent quarter-on-quarter, recording an annual increase of 6.1 percent. (End) F.N.K / A.M.H