Kuwait Finance House Report on the Local Real Estate Market for the Second Quarter of 2026

A report by Kuwait Finance House on the local real estate market during the second quarter of 2026 indicated that occupancy rates for investment properties in Kuwait stabilized at previous levels across all property types and segments, recording between 88% and 92%.

The report added that average rental values for private housing in the second quarter of 2026 experienced a slight annual decline in certain residential areas across the governorates. Amid limited declines in private housing prices, a slight decrease in rental value was observed in most locations within this property category. Furthermore, the waiting period for housing allocation encouraged a significant segment of citizens to rent out their private housing, thereby increasing supply. This occurred alongside strong demand for areas close to workplaces and shopping centers, which stimulated tenant demand for this type of property.

Meanwhile, the average rental value for private housing with an area of 400 square meters across the governorates stood at 679 Kuwaiti Dinars by the end of the second quarter of 2026, representing a slight quarterly decline of 1.9%, and an annual decrease of 3.1%. The average in the Capital Governorate reached 845 Dinars, reflecting an annual decline of 0.9%, while in Hawalli Governorate, it stood at 747 Dinars, showing a limited annual decrease of 3.5%. In Farwaniya Governorate, the rental value reached 537 Dinars, down 5.2% annually. In Mubarak Al-Kabeer Governorate, the average rental value for the same area was 637 Dinars, a 2.6% annual decline. The average rental value in Ahmadi Governorate reached 505 Dinars, while in Al-Jahra Governorate, the average price was 450 Dinars.

The average rental value for apartments in investment property areas across the governorates reached approximately 350 Dinars by the end of the second quarter of 2026, marking a slight quarterly increase of 0.4% and an annual increase of 1.3%. Annual growth rates in average rental values varied by area and governorate. In the Capital Governorate, the average rent was 377 Dinars, up 0.8% annually. In Hawalli Governorate, it reached 371 Dinars, up 1.9% annually.

In Farwaniya Governorate, the rental value reached 343 Dinars, up 0.7% annually, while in Ahmadi Governorate, the average rent was around 310 Dinars, up 2.0% annually. In Mubarak Al-Kabeer Governorate, the average rent stood at 360 Dinars, with no annual change. In Al-Jahra Governorate, the average was 345 Dinars, up 3.0% annually.

The average rental value per square meter for ground-floor commercial space reached 29.1 Dinars by the end of the second quarter of 2026. In Kuwait City within the Capital Governorate, the average was 39 Dinars per square meter, while in Hawalli, it reached 30 Dinars, and in Salmiya, 35 Dinars. In Farwaniya, it also recorded 35 Dinars, while in Qusour, it stood at 31 Dinars by the end of the second quarter of 2026.

The average rental value per square meter for commercial property on the mezzanine level reached 13.3 Dinars across the governorates by the end of the second quarter of 2026. In some areas of the Capital Governorate, it reached 16.5 Dinars, while in commercial areas of Hawalli, the average was 14 Dinars, and 15 Dinars in Salmiya. In Fahaheel, the average price was 13.8 Dinars, dropping to 12 Dinars in Manqaf, and recording 15 Dinars in Farwaniya.

Office rental values vary according to location, finish quality, and the services provided to tenants and building visitors. The average stood at 9.3 KD per square meter across the governorates by the end of the second quarter of 2026. In Kuwait City, Capital Governorate, the average rent reached 13.5 KD, while in Hawalli it was 9 KD, in Salmiya it averaged 9.3 KD, in Farwaniya it was 8.5 KD, and in Fahaheel it also reached 8.5 KD per square meter by the end of the second quarter of 2026.

The average industrial rental price per square meter reached 5 KD for basements in the Shuwaikh Industrial Area by the end of the second quarter of 2026, while ground floors averaged 26.5 KD and mezzanines 4.0 KD. In Al-Rey, the average for basements was 4.5 KD, while ground floors reached 26.5 KD and mezzanines 4.5 KD.

Prices differ based on locations and other features and area sizes. The average industrial rental price per square meter in Al-Aridya (Warehouses) was 4.5 KD for both basements and mezzanines, and 8 KD for ground floors by the end of the second quarter of 2026. In Al-Aridya (Crafts), the average was 8 KD for basements, 24.8 KD for ground floors, and 5.5 KD for mezzanines. In East Ahmadi, the rental rate per square meter was 3.5 KD for both basements and mezzanines, and 15.3 KD for ground floors. In Al-Fahaheel Industrial Area, the rental value per square meter for basements reached 4 KD by the end of the second quarter of 2026, rising to 22 KD for ground floors and 4.5 KD for mezzanines.