Kuwait Finance House: KD 907.5 million in real estate transactions in Q2

The Kuwait Finance House report on the local real estate market for the second quarter of 2026 noted 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 property types. Data from the quarter showed sustained momentum, with 1,494 real estate transactions recorded, totaling 907.5 million dinars. The residential sector remained the most active in terms of both value and number of transactions, while waterfront properties and warehouse categories contributed to boosting the total transaction value, driven by higher trading values in these segments.

The report recorded an increase in the value of transactions accumulated on a monthly basis during the second quarter compared to the previous quarter. The average transaction value index declined, registering 607,000 dinars, representing a 16.1 percent annual decrease and a notable 21.5 percent quarterly decrease.

It pointed out a quarterly decline in prices for most residential areas by the end of the second quarter, including several areas in the Capital Governorate, albeit marginally compared to the previous quarter. Consequently, the average price in both the Capital and Hawalli governorates fell by 0.1 percent on a quarterly basis, with prices remaining stable in most areas of the two governorates, while some other areas saw no change in price levels.

The increase in the average price of investment properties accelerated, reaching 1.6 percent, compared to a slightly lower quarterly increase of 1.3 percent in the first quarter of 2026. The average price saw a 7 percent annual increase, and investment property prices rose in most governorate areas compared to the first quarter. Prices also increased at varying rates on an annual basis, driven by some investors’ desire to lease their units for professional and commercial activities.

Prices for investment sites increased by 1.2 percent on a quarterly basis, including in the Capital and Hawalli by 1.3 percent, and by a higher rate of 2.7 percent in Ahmadi.

The report indicated that the average price per square meter for commercial properties rose by 0.2 percent across governorates compared to the previous quarter, with average prices remaining stable in most governorates and seeing a slight increase in others. Meanwhile, the annual growth rate accelerated across governorates, reaching 4.1 percent. The quarterly decline in the average price of industrial properties accelerated to 4.1 percent, compared to a 1.7 percent quarterly decline in the first quarter of 2026.

The average price per square meter fell to 963 dinars for private residential properties, a 0.3 percent decrease from the first quarter, while investment properties rose to 1,871 dinars, a 1.6 percent quarterly increase. Commercial properties increased to 4,989 dinars, a 0.2 percent quarterly rise. Industrial properties stood at 795 dinars, and artisanal properties at 2,865 dinars.

The report also stated that the average price per square meter for ownership of investment apartments with areas of 95 and 70 square meters rose by 1.9 percent annually by the end of the quarter, reaching 917 dinars across governorates. The Capital recorded the highest average at 1,154 dinars, followed by Mubarak Al-Kabeer at 1,091 dinars, Hawalli at 1,052 dinars, Farwaniya at 796 dinars, and Ahmadi at 762 dinars.

The average rent for private residential housing reached 679 dinars, a 5.3 percent annual decline. In the Capital, it was 845 dinars, Hawalli 747 dinars, Farwaniya 537 dinars, Ahmadi 505 dinars, and Mubarak Al-Kabeer 637 dinars, a 2.6 percent annual decline. The average rental value in Jahra fell to 450 dinars.

As for the rental value of investment apartments, the average reached 350 dinars across the governorates, representing a 0.4 percent increase on a quarterly basis and a 1.3 percent increase on an annual basis. In the capital, the average stood at 377 dinars, up 0.8 percent; Hawalli reached 371 dinars, up 1.9 percent; Al-Farwaniyah recorded 343 dinars, up 0.7 percent; Mubarak Al-Kabeer remained unchanged at 360 dinars; Al-Ahmadi rose by 2 percent to 310 dinars; and Al-Jahra reached 345 dinars, up 3 percent.

Hamad Al-Husawi, the Real Estate Valuation Executive Director at Bayan (The Financial Home), stated that real estate sector transactions in the second quarter highlighted the significance of the private residential sector in driving overall market activity, reflecting its prominent position among traders and in the aggregate flow of transactions, accounting for nearly half of the total transaction volume.

Al-Husawi clarified that private residential transactions accounted for 47 percent of total transactions, a notable increase from the 38.5 percent share recorded in the previous quarter, securing the top position. Investment real estate remained in second place with a 31.6 percent share, up from 28.5 percent in the first quarter. Commercial transactions followed, with their share declining to 12.4 percent, down from 21 percent of total transactions in the first quarter. Transactions in other categories accounted for 8.9 percent, driven by activity in agricultural nurseries, which represented 3.2 percent, followed by warehouses at 3 percent, and the coastal strip at 2.6 percent. Meanwhile, artisanal real estate transactions accounted for just 0.1 percent.

He added that, according to data and indicators from the Registration and Documentation Department, real estate transactions decreased by 11.4 percent compared to the first quarter, yet remained significantly higher by 15 percent on an annual basis.