Al-Kout Financial Group: 1 Billion KD in Real Estate Transactions in Q3... Up 12.4 Percent

A report by Kuwait Finance House stated that data for the third quarter of 2026 showed the value of real estate transactions rising to approximately 1 billion dinars, an increase of 12.4 percent compared to the second quarter, while the number of deals reached 1,502, a decrease of 0.5 percent compared to the same period in 2025.

Private residential property remained the most active sector in terms of value and number of transactions. Meanwhile, improved trading in investment, commercial, and artisanal real estate supported 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. This sector is one of the most prominent non-oil segments of the Kuwaiti economy.

The report reviewed sector performance, noting that private residential transactions rose by 15 percent and artisanal transactions by 120.6 percent, while investment transactions fell by 11.7 percent, commercial by 58.5 percent, coastal by 26.2 percent, and warehouses by 90.5 percent.

In terms of volume, private residential deals increased by 6.9 percent, while investment deals declined by 17.7 percent, commercial by 57.9 percent, coastal by 33.3 percent, artisanal by 66.7 percent, and warehouses by 87.5 percent.

The report highlighted that the value of private residential transactions rose to 455.3 million dinars, a 6.7 percent increase on a quarterly basis, with the number of deals stabilizing at 1,106. Investment transactions also increased to 359.1 million, a rise of 25.1 percent, with the number of deals growing to 359, up 9.5 percent. Commercial transactions recorded 183.1 million, a 62.2 percent increase from the previous quarter, despite a drop in the number of deals to 32, a decrease of 28.9 percent. Conversely, coastal transactions fell to 2.3 million through two deals, and warehouse transactions declined to 1.8 million through a single deal. Meanwhile, artisanal real estate transactions rose to 18.2 million through two deals, while the nursery category recorded no transactions during the quarter. The average value of total real estate deals stood at approximately 679,000 dinars in the third quarter, up 11.8 percent from the second quarter, but still roughly 15.4 percent lower than its level in the third quarter of the previous year.

The report noted that private residential prices fell by 0.5 percent compared to the previous quarter, recording an annual decline of 4.8 percent. In contrast, investment property prices rose by 1.3 percent on a quarterly basis, marking an annual increase of 6.1 percent. Commercial prices remained stable with no significant change on a quarterly basis, but increased by 1.8 percent annually.

Chalet prices fell by 2.1 percent compared to the previous quarter, driven by a decline in average prices in most locations overlooking the coastline, alongside continued stability in the average price in the Sabah Al-Ahmad Al-Jaber Al-Sabah 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 under coastal and chalet properties within the private residential sector and is considered a desirable location as citizens seek larger spaces and more recreational areas.

The report stated that the average price declined by 0.4 percent in the Capital Governorate and by 0.3 percent in Hawalli Governorate on a quarterly basis, with stability in some areas within both governorates, while prices in other areas experienced slight changes.

The average price in the Al-Ahmadi Governorate fell by 1.7 percent compared to the second quarter. Prices in Mubarak Al-Kabeer also declined by 0.2 percent on a quarterly basis, driven by a slight decrease in some areas of the governorate and stability in others.

In Ahmadi, prices fell by 0.2 percent, and in Al-Jahra by 1.4 percent compared to the second quarter, with a slight quarterly decline observed in most governorates.

He noted that the average price per square meter for investment property continued its upward trend, reaching 1,896 Kuwaiti dinars by the end of the third quarter, marking a quarterly growth of 1.3 percent. This quarterly increase covered all governorates; prices rose by 1 percent in the Capital, 1.2 percent in Hawalli, 1.5 percent in Farwaniya and Mubarak Al-Kabeer, and 1.6 percent in Ahmadi, while Al-Jahra recorded the highest quarterly growth at 1.9 percent. On a yearly basis, prices in the Capital rose by 4.8 percent and in Hawalli by 5.1 percent, while average prices in the remaining governorates also increased by notable margins.

The quarterly decline rate in the average price of industrial property eased by the end of the third quarter, recording a 2.7 percent drop compared to a 4.1 percent quarterly decline in the second quarter.

The report also noted that the average price per square meter in residential areas fell to around 958 dinars, while it rose in investment land to 1,896 dinars, representing a quarterly increase of 1.3 percent. In commercial property, the average reached 4,888 dinars per square meter, with a slight quarterly decline of approximately 0.02 percent. Meanwhile, prices in the industrial category stood at 774 dinars, and in the artisanal property category at 2,865 dinars.

Al-Hasawi added that the real estate sector continued to deliver strong performance and high indicators during the third quarter, despite geopolitical tensions and unprecedented fluctuations in oil prices. This was supported by the stability of the local economic environment, the robustness of the banking sector, and sustained demand across various property categories. He pointed out that positive market outlooks were further bolstered by recent legislative reforms and laws, which contribute to maintaining real estate activity on a more balanced trajectory.

He added, “The growing number of real estate development projects and the government’s focus on developing the sector’s operations make Kuwait one of the most attractive real estate markets in the region.” He emphasized that property valuation constitutes an important aspect of real estate activity, encompassing multiple levels, and contributes to the smooth flow of financing and the regulation of market transactions based on transparency, professional considerations, and fair assessments that take into account ground realities and developments.

Al-Hasawi stressed the distinctive human capabilities and professionalism in property valuation at “Bayt Al-Tamwil,” which consistently reinforce the high confidence clients of all types place in the valuation services it provides. This is complemented by a robust organizational structure that yields top-tier market performance, making “Bayt Al-Tamwil” the preferred entity for essential property valuation across all sectors, backed by extensive experience, reliability, neutrality, and transparency.