More empty apartment flats in Kuwait as expatriates dwindle
Kuwait, May 5 (KUNA) - There are currently 49,130 empty apartment flats in Kuwait and 26,466 others under construction, thus more than 75,000 units need to be "absorbed" by the domestic property market in 4-5 years, according to Kuwait Real-Estate Union.
Proportion of the property units' occupation amounted in the current year to 86.8 percent, dropping by 8.2 percent as compared to the past five years -- which had soared to 95 percent, said Ahmad Al-Dewaihees, the union secretary general at a news conference.
Average monthly rent dropped from KD 278.9 (approximately USD 920.3) to KD 242 (USD 798.6), by 13.2 percent, said Al-Dewaihees, citing a report prepared by the union, "Al-Murshed 2017)." The report included a survey covering a sample of 162.576 apartment flats in 5,695 plots, at 19 locations. It studied 875 plots, including 26,466 under-construction residential units in all districts, in addition to 13,535 built ones, where proportion of new units amounted to 6.6 percent of the promoted plots.
Proportion of the expatriates' populace growth, which reached 4.8 percent over the past five years, dropped by two percent in 2017 and would fall by 1.5 percent in the coming five years.
As to ownership flats, transactions exceeded 1,000 in 2007 and 2008. Following the global economic crisis, they ebbed by 2012.
However, the market recovered, with 973 transactions in 2015 and dropped to 671 in 2017.
Source: KUNA [Link]