Kuwait Finance House: Private Housing Rents Declined in the Second Quarter
A report by Kuwait Finance House on the local real estate market during the second quarter of 2026, regarding occupancy rates and rents, indicated that occupancy rates remained stable compared to previous levels across all tiers of investment property types, recording between 88% and 92%.
The report noted that average rental values in the second quarter experienced a slight annual decline in some private residential areas across the governorates. Amid limited declines in private housing prices, a slight decrease in rental values was observed in most locations within this property category. Furthermore, the expectation of allocating housing units encouraged a large segment of citizens to rent out their private residences, thereby increasing supply. This occurred alongside strong demand for areas close to workplaces and shopping centers, which stimulated tenant demand for this category of properties.
The report recorded a decline in the average rental value for a 400-square-meter private residence across the governorates, reaching 679 Kuwaiti Dinars by the end of the second quarter, representing a slight quarterly decline of 1.9% and an annual decline of 3.1%. The average in the Capital Governorate reached 845 Dinars, with an annual decrease of 0.9%, while in Hawalli it stood at 747 Dinars, a 3.5% drop. In Farwaniya, it was 537 Dinars, down 5.2%, and in Mubarak Al-Kabeer, it was 637 Dinars, down 2.6%. In Ahmadi, it was 505 Dinars, while in Jahra, it reached 450 Dinars. The report also indicated that the average rental value for apartments in investment property areas across the governorates reached approximately 350 Dinars, with 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, it reached 377 Dinars, up 0.8% annually; in Hawalli, it was 371 Dinars, up 1.9%; in Farwaniya, it was 343 Dinars, up 0.7%; in Ahmadi, it was 310 Dinars, up 2%; in Mubarak Al-Kabeer, it was 360 Dinars, with no change; and in Jahra, it was 345 Dinars, up 3%.
The report noted that the average rent per square meter for commercial property in mezzanine spaces reached 13.3 Dinars across the governorates. In some areas of the Capital, it reached 16.5 Dinars, while in Hawalli it was 14 Dinars, and in Salmiya, it reached 15 Dinars. In Fahaheel areas, it was 13.8 Dinars, dropping to 12 Dinars in Manqaf, and reaching 15 Dinars in Farwaniya areas.
The report highlighted that rental values for offices vary according to location, finishing quality, and the services provided to tenants and property visitors. The average across the governorates was 9.3 Dinars per square meter. In Kuwait City within the Capital, the average rent reached 13.5 Dinars, while in Hawalli it was 9 Dinars, in Salmiya 9.3 Dinars, in Farwaniya 8.5 Dinars, and in Fahaheel 8.5 Dinars.
Prices vary depending on locations and other features and area sizes. The average rental price per square meter for warehouses (Al-Aridia) in basements or mezzanines is 4.5 Dinars, while for ground floors it is 8 Dinars. In contrast, for artisanal warehouses (Al-Aridia), the rate is 8 Dinars for basements, 24.8 Dinars for ground floors, and 5.5 Dinars for mezzanines. In East Ahmadi, the rate is 3.5 Dinars for basements or mezzanines and 15.3 Dinars for ground floors. In Industrial Fahaheel, it is 4 Dinars for basements, rising to 22 Dinars for ground floors, while reaching 4.5 Dinars for mezzanines.
