“Bayt Al-Mal”: KD 907.5 million in local real estate transactions in the second quarter of 2026 - Sarmad

Kuwait Finance House (KFH) announced on Monday that real estate transaction values reached 907.5 million Kuwaiti dinars in the second quarter of this year, representing an 11.4 percent decline compared to the first quarter of 2026.

In its report on the local real estate market for the second quarter of this year, KFH stated 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 sustained demand for various types of real estate.

The bank clarified that the residential real estate sector remained the most active in the second quarter in terms of both transaction value and volume. Meanwhile, properties located along the coastal strip and warehouse categories contributed to boosting the total transaction value, driven by increases in the transaction values recorded in these segments.

This performance was supported by the growth of non-oil activities, continued capital expenditure, and government projects under the development plan and Kuwait Vision 2035, alongside strong banking liquidity and growth in real estate credit, despite the market being affected by external factors such as geopolitical tensions, unprecedented fluctuations in oil prices, and anticipation of global monetary policy trajectories.

The report emphasized that the real estate sector demonstrated clear resilience due to local demand and improved investor confidence. It noted that the positive future outlook was reinforced by potential legislative reforms, particularly the development of mortgage financing and discussions regarding a mortgage law, which would support continued real estate activity in the coming period on a more balanced path.

Investment real estate transactions fell to 287.1 million dinars in the mentioned quarter, a decrease of 1.6 percent. Meanwhile, transaction values for commercial real estate dropped by 47.4 percent quarter-on-quarter to 112.9 million dinars, despite an increase in demand for this category to 45 transactions, up by 7.1 percent.

The report indicated that transaction values for coastal strip properties rose to approximately 23.5 million dinars through four transactions in the second quarter, more than doubling the value recorded in the first quarter of 2026. Conversely, transaction values for artisanal real estate declined to 700,000 dinars, while the warehouse category reached an exceptional level, recording 27.5 million dinars through eight transactions in the second quarter of 2026.

KFH’s report further revealed that the average total real estate transaction value index decreased to 607,000 dinars in the second quarter of 2026, down by 16.1 percent year-on-year and by a notable 21.5 percent quarter-on-quarter.