Kuwait Finance House: Average price of private housing stands at 1,318 dinars in the capital

A report by Kuwait Finance House indicated that the average price per square meter of private residential property in the Capital Governorate reached 1,318 Kuwaiti Dinars by the end of the second quarter of 2026. The price for investment properties stood at 2,738, while commercial property prices were higher, reaching 9,918.

In Hawalli Governorate, the average price per square meter for private residential property was around 1,028 Dinars, rising to 1,978 for investment properties and 4,061 for commercial properties. In Farwaniya, the average price for private residential property was 693 Dinars, with investment properties averaging 1,716 and commercial properties 2,813.

The report noted that transactions in private residential property accounted for 47% of total real estate transactions, a significant increase from 38.5% in the previous quarter, securing the top position. Investment property transactions remained in second place, contributing 31.6% of transactions compared to 28.5% previously. Commercial property transactions followed, with a share that dropped to 12.4% from 21%. Other categories accounted for 8.9% of transactions, driven by activity in agricultural nurseries, which alone represented 3.2%, followed by warehouses at 3%, the coastal strip at 2.6%, and artisanal property at 0.1%.

The report recorded the total value of real estate transactions at 907.5 million Dinars, according to data and indicators from the Ministry of Justice. This represents a 11.4% decrease from the high levels seen in the first quarter, although it remains 15% higher on a year-on-year basis.

The average transaction value index for real estate stood at 607,000 Dinars, down 21.5% from the first quarter and 16.1% on a year-on-year basis.

The total number of transactions, aggregated on a monthly basis, reached 1,494, an increase of 12.8%, and 2.1% higher on a year-on-year basis. This growth was driven by a year-on-year rise in the number of transactions in private residential and commercial property categories. Conversely, the number of registered transactions in investment property declined, and demand for the coastal strip category fell on a year-on-year basis, although there was notable activity in the warehouse category. Additionally, a limited number of transactions were recorded in the agricultural nurseries category.

The report highlighted that transactions in private residential property totaled 426.6 million Dinars, an increase of 8.2% from the previous quarter, and 2% higher on a year-on-year basis. The average transaction value was 385,700 Dinars, down 12.2% from the first quarter, which had recorded a high level. This indicator is 2.3% lower on a year-on-year basis.

Private residential property recorded 1,106 transactions, a 23.3% increase from the 897 transactions in the first quarter, and 4.4% higher on a year-on-year basis.

The report also indicated that the value of investment property transactions reached 287.1 million Dinars, a decrease of 1.6% from the first quarter. This value is significantly lower, down 40.5% on a year-on-year basis.

It noted an improvement in the average transaction value for investment property, reaching 875.3 Dinars, a 0.2% increase from the first quarter, which had recorded its lowest level in nearly two years. However, the average transaction value index dropped by 36.3% on a year-on-year basis.

The number of investment transactions reached 328, a decrease of 1.8% from the first quarter and 6.6% lower on a year-on-year basis.

Regarding commercial property transactions, the value recorded was 112.9 million Dinars, down 47.4% from the first quarter and 2.3% lower on a year-on-year basis. The average transaction value was approximately 2.5 million Dinars, a decrease of 50.9% from approximately 5.1 million. This indicator also dropped significantly from its high level in the second quarter, which exceeded 5 million.

Demand for commercial property recorded 45 transactions, a 7.1% increase from the 42 transactions in the first quarter.