Kuwait Finance House: KD 1 Billion in Property Transactions

The real estate report issued by Kuwait Finance House during the third quarter of 2026 indicated that the value of real estate transactions rose to approximately 1 billion dinars, representing a 12.4% increase compared to the second quarter of the same year. Meanwhile, the number of deals reached 1,502, marking a slight decline of 0.5% during the same period. Private residential real estate remained the most active sector in terms of both value and number of transactions. Improvements in the trading of investment, commercial, and artisanal real estate contributed to supporting 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 in one of the most prominent non-oil sectors of the Kuwaiti economy.

The report clarified that the growth in capital expenditure and government projects under the development plan and Kuwait Vision 2035, alongside strong banking liquidity and the expansion of real estate credit, contributed to the improvement and rise in transaction values during the third quarter. This growth occurred despite external factors, including geopolitical tensions, unprecedented fluctuations in oil prices, and anticipation regarding the trajectory of global monetary policy. The real estate sector demonstrated clear resilience, driven by 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, as well as other laws such as the Sukuk Law. These measures support the economy and contribute to sustaining real estate activity in the coming period within a more balanced trajectory. 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 path of global monetary policy.

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

The value of private residential transactions rose to 455.3 million dinars in the third quarter of 2026, a 6.7% increase on a quarterly basis, with the number of transactions remaining stable at 1,106. Investment real estate transactions also increased, reaching 359.1 million dinars (up 25.1%), with the number of deals rising to 359 (up 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 28.9%). Conversely, coastal real estate transactions fell to 2.3 million dinars across two deals, and warehouse transactions dropped to 1.8 million dinars through a single deal. Artisanal real estate transactions rose to 18.2 million dinars across two deals, while the agricultural nursegery 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 11.8% from the second quarter of 2026, though it remained roughly 15.4% lower than its level in the third quarter of 2025.

First: Market Trends

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

Villa area prices declined by 2.1% at the end of the third quarter of 2026 compared to the previous quarter, amid a drop in the average price in most locations overlooking the coastal strip, as well as continued stability in the average price in the Sabah Al-Ahmed Al-Jaleea area during the third quarter compared to the previous one. According to data from the Registration and Documentation Department at the Ministry of Justice, this area is classified as coastal and villa-type residential property and remains highly sought after, given citizens’ efforts to find larger spaces and more recreational areas.

Price Movements in Different Areas

Prices in most residential areas declined slightly at the end of the third quarter of 2026 on a quarterly basis. This included many areas in the Capital Governorate, which saw a limited decline compared to the previous quarter, thereby reducing the average price in both the Capital Governorate by 0.4% and Hawalli Governorate by 0.3% on a quarterly basis. Some areas in both governorates remained stable, while other areas experienced minor price changes.

Private residential property prices declined in some areas of the Farwaniya Governorate, where the average price in the governorate dropped by 1.7% compared to the second quarter of 2026, driven by limited price declines in some of its areas. Property price levels in the Mubarak Al-Kabeer Governorate also declined slightly by 0.2% on a quarterly basis, fueled by a minor drop in some areas and stability in others.

In the Ahmadi Governorate, price levels declined by 0.2% on a quarterly basis, amid a slight and limited drop in the average price in most areas of the governorate. The average price in the Jahra Governorate also fell by 1.4% compared to the second quarter, with a slight quarterly decline in most areas of the governorate.

The average price per square meter for investment property continued its upward trend, reaching 1,896 dinars at the end of the third quarter of 2026, recording a quarterly growth of 1.3% and an annual increase of 6.1% compared to the third quarter of 2025. The quarterly increase covered all governorates; prices rose by 1.0% in the Capital, 1.2% in Hawalli, 1.5% in both Farwaniya and Mubarak Al-Kabeer, and 1.6% in Ahmadi. Jahra recorded the highest quarterly growth among governorates at 1.9%.

On an annual basis, prices rose by 4.8% in the Capital Governorate and by approximately 5.1% in Hawalli Governorate, while average prices in the remaining governorates also increased by notable margins.

The average commercial price per square meter across governorates remained stable at the end of the third quarter, with no significant change compared to the previous quarter. The average price remained stable in most governorates, with a slight increase in others. Meanwhile, the annual growth rate across governorates slowed, recording 1.8% in the third quarter, compared to an increase of 4.1% in the second quarter on an annual basis.

The quarterly decline rate in the average price of industrial property eased to 2.7% by the end of the third quarter of 2026, down from a quarterly decline of 4.1% in the second quarter of 2026, while the average price in craft properties remained unchanged on a quarterly basis for the second consecutive quarter. The average price per square meter, calculated on a residential area basis across the State of Kuwait, fell to 958 Kuwaiti dinars for private residential property, a decrease of 0.5% compared to the second quarter of 2026. Meanwhile, the average price per square meter for investment land rose to 1,896 dinars, representing a quarterly increase of 1.3%. The average price for commercial property in commercial areas reached 4,988 dinars per square meter, with a slight quarterly decline of approximately 0.02%. The average price for land in the industrial category stood at 774 dinars, while the average for craft property reached 2,865 dinars by the end of the third quarter of 2026.

The average price per square meter for freehold apartments and rental values: The average price per square meter for freehold apartments in investment properties with areas of 95 square meters and 70 square meters increased by 1.9% on an annual basis, reaching 917 dinars at the governorate level. The average price per square meter in the Capital Governorate was the highest in the country, recorded at 1,154 dinars, followed by the average price in the Al-Mubarakiya Governorate at 1,091 dinars, then the average price in the Hawalli Governorate at 1,052 dinars. In Farwaniya, the average price was recorded at 796 dinars, and in Ahmadi, it reached 762 dinars by the end of the third quarter of 2026.

Rental values: The average rental value for private residential property reached 679 dinars across the State of Kuwait, a decrease of 4.9% on an annual basis. The average in the Capital Governorate reached 845 dinars, while in Hawalli Governorate it was 747 dinars. The average in Farwaniya Governorate reached 537 dinars, and in Ahmadi Governorate it was 505 dinars. In Al-Mubarakiya Governorate, the average was recorded at 637 dinars, a decrease of 2.6% on an annual basis. Meanwhile, the average rental value decreased by a higher rate in Al-Jahra Governorate, reaching 450 dinars by the end of the third quarter of 2026.

Rental values for apartments in investment properties: The average reached 351 dinars at the governorate level by the end of the third quarter of 2026, with a slight increase of 0.4% on a quarterly basis and 0.9% on an annual basis. The average rental value in the Capital reached 377 dinars, an increase of 0.7% on an annual basis. In Hawalli Governorate, the average reached 372 dinars, an increase of 0.5% on an annual basis, and in Farwaniya Governorate, it reached 344 dinars, an increase of 0.2% on an annual basis. In Al-Mubarakiya Governorate, it reached 363 dinars, an increase of 0.7% for the same period. Meanwhile, the average in Ahmadi Governorate reached 313 dinars, an increase of 2.0%, and in Al-Jahra Governorate, it reached 350 dinars, an increase of 2.2% compared to the third quarter of 2025.