Abdullah Al-Hamad: Real Estate Developer Faces Test of Fair Competition and Housing Quality

Abdullah Al-Hamad, CEO of Al-Mustashar Construction for Contracting, affirmed that the success of Kuwait’s real estate developer system requires striking a balance between protecting citizens’ rights and ensuring the sustainability of real estate developers. This should be achieved by establishing clear rules for fair competition and transparency, conducting economic feasibility studies for projects, and thereby guaranteeing their continuity while providing residential products at fair prices and appropriate quality.

In a statement, Al-Hamad clarified that opening the field to more real estate developers in the coming stages necessitates establishing a clear regulatory mechanism for competition, one that prevents unconsidered pricing practices that could harm the market and the quality of residential products. He emphasized that housing projects differ from traditional commercial activities, as they are linked to providing the family’s primary residence, rather than merely buying and selling property for profit.

He stressed the importance of setting clear standards for determining the prices of residential units and plots, through cooperation between developers and government authorities. This approach aims to strike a balance between the actual cost of the project and citizens’ purchasing power, while simultaneously ensuring an appropriate economic return for developers.

He also highlighted the importance of establishing clear safeguards to protect citizens in cases of default on mortgage financing, particularly concerning banks’ rights to dispose of mortgaged properties and the mechanisms for handling such assets if the owner defaults. He underscored the necessity of finding legislative solutions that preserve the rights of financing institutions without harming the family’s right to their primary residence.