Databases: The Missing Link in Property Valuation

The real estate appraisal profession in Kuwait has witnessed significant regulatory development in recent years, through the establishment of regulations and training programs that qualify real estate appraisers and equip them with the necessary legal and technical knowledge to practice the profession professionally. However, this development still requires an essential element: accurate real estate databases.

Among the most important appraisal methodologies are the sales comparison approach and the cost approach, both of which rely on reliable data and indicators to determine a property’s fair value. In Kuwait, published sales data are limited to general information such as property type, area, plot number, size, and price, without important details like the property’s exact location, condition, and components. This often forces appraisers to supplement such information based on their experience or market sources.

The state has made clear efforts to develop the profession, starting from the decisions of the Ministry of Commerce and Industry regulating real estate appraisal in 2023 and 2025, up to the Minister of Justice’s Decision No. 585 of 2026 concerning the development of the mechanism for appointing expert witnesses.

To complement these efforts, the electronic real estate broker register, which has been in operation since January 2025, can be enhanced by adding more detailed fields for property and transaction information, and by converting completed contract data into a database and market indicators for the real estate sector.

This way, we can leverage an existing system without the need to create a new platform, turning the electronic broker register into an informational asset that contributes to the development of real estate appraisal and enhances market transparency.

Real Estate Expert