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Kuwait: Thousands of flats vacant, rent reduced –

Kuwait City: Investment in Kuwait has seen a 10-15% drop in rent, with 61,000 flats currently vacant.

According to local media reports, data published by the Kuwait Real Estate Union in 2021 shows that 61,000 flats were vacant in Kuwait, while 335,100 flats are occupied, accounting for 84.6% of the total apartments.

Suleiman al-Dalijan, a real estate expert, said prices were stable in residential areas, while rents in investment areas were down 10 to 15 percent.

He said a number of economic factors had affected rental prices in the investment areas, adding that the downturn in residential areas had not affected the citizens due to the stabilization of their income during the epidemic.

He said that the average rent of a 60 sq m apartment in Holly Governorate is 270 to 300 Kuwaiti dinars.

Yale estate broker Salem Al-Burki says that despite a 10 to 12 percent drop in investment apartment rents over the past six months, prices are still high in the region and there is a lack of services in investment buildings.

Burke explained that although there are better services in residential areas, many tenants are facing stricter conditions despite agreeing to pay higher rents, even if the tenants accept higher rents. I have problems with the owners regarding the number of people living in.

Regarding apartment pricing procedures, Burkey said it depends on a number of factors, including market value, supply and demand, owner pricing and agreement between the parties.

Abu Ahmed said that the Municipal Council determines the size of the apartment, but after the electricity is connected to the property, the owner divides the apartment into two apartments instead of one. Is priced as if it is a large apartment which causes prices to go up.

He said the municipal council obliges property owners to provide tenants with parking space in the basement of the building, but after obtaining a building license, they convert it into storage areas and for parking spaces. Ignoring the needs of the tenants, they rent it out to outsiders.

Mustafa Ahmed, another employee of the real estate office, said that due to the shortage of construction workers, their daily wages increased and eventually the total cost of the contractor increased, a problem that affects rent rates You can also rent according to your budget.

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