Urgent.. Decreasing Rents by 20% in Kuwait
Decreasing Rents by 20% in Kuwait
Many investors in the investment sector are asking whether rents will stabilize, decrease or increase.
It is known that the decline in rents of investment buildings has reached 10% 20% during the last 3 years, it is strange that there are some areas have not decreased rents, and why these areas are close to areas with a large urban extension such as the region of Jleb Al - It is noteworthy that the quantity of supply of investment property is limited, in addition to the proximity of Al-Mutlaa and Saad Al-Abdullah City, which are distinguished by the construction movement, the large number of schools and government establishments that need maintenance and maintenance companies, While in an area such as Al Mahboula (rent of the apartment 60 m 2: 250 260 dinars) is characterized by leasing to companies that have contracts with oil companies, although the supply is more than demand, which generates no rent increases while Hawalli Hawalli, Salmiya, And the field of Hawally »is characterized by stagnation in rental rates with the expected decline of some of the normal sites and bad finishes« Rent of the middle apartment finished up to 300 300 dinars », while the area of the sea is characterized by an increase in rents in the case of good finishing and appropriate sites.
It is natural that the construction movement will be negatively affected in this sector as a result of many factors, including: the continued high cost of building in an unplanned building, vacancy in the apartments, making the decision to buy the buildings is better for companies that have time to value when investing money in real estate.
Conclusion: Rental values are expected to stabilize for the coming period only in the event of economic conditions such as reducing the state budget or lack of suitable opportunities for the private sector, where the number of expatriates working 1.5 million as in August 2017.