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Mon 17 Oct 2016 11:14 AM

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Oversupply, low demand in Kuwait's real estate likely to reduce rent prices

Rents forecast to drop by $165 (KD50) in some areas

Oversupply, low demand in Kuwait's real estate likely to reduce rent prices
(Yasser Al-Zayyat/AFP/Getty Images)

Oversupply and low demand in Kuwait’s real estate market are likely to result in lower rent prices in the coming months, according to property analysts.

If demand does not increase in November and December - when residents normally rent new apartments – rents will drop by $165 (KD50) in some areas of the country, Secretary General of the Real-Estate Union Qais Al-Ghanim told The Time Kuwait.

He added other sectors of the economy could also be negatively affected.

Al-Ghanim said the low demand is due to many inexperienced investors in Boursa Kuwait shifting to the property sector in line with easily accessible bank loans at low interest rates.

Other factors include the government’s distribution of a large number of subsidized plots and homes as well as the shift of expat investors from the real estate sector to the business sector.

Al-Ghanim advised citizens to wait until January to purchase property as prices are forecast to drop further.

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