The real estate market in Kuwait delivered an exceptional and unprecedented performance in 2025, with total real estate transaction values reaching their highest level in the past decade. Transactions exceeded KWD 4.583 billion, marking an increase of approximately 22% compared to 2024.
Ahmed Al-Tayeb, Founder and Director of Al Hasbah Real Estate Company, stated that all real estate sectors experienced notable growth this year, including residential, investment, and commercial segments.
He explained that the residential sector primarily benefited from the delivery of a large number of new housing units, particularly within government housing cities. Meanwhile, the investment sector recorded a significant jump driven by intensive purchasing activity, expanded building development, and rising occupancy rates.
In a related context, Ibrahim Al-Awadhi, Chairman of the Real Estate Union of Kuwait, noted that the market’s strong performance was supported by a range of legislation and regulatory measures issued during the year.
These included a special focus on housing city laws, the regulation of the real estate valuation profession, and the issuance of bylaws related to investment housing. Real estate exhibitions also played a key role in strengthening and stimulating market activity.
Real estate expert and valuer Suleiman Al-Ali added that the investment sector achieved returns of 5.5%, bringing them close to bank interest rate levels at the beginning of 2025. He also anticipated a gradual correction in returns and repricing throughout 2026.
Future projections indicate continued growth in Kuwait’s real estate market during 2026, supported by several positive factors. These include the increased release of new land plots, the implementation of mortgage financing regulations, a stronger role for real estate developers, and the ongoing influence of supply and demand dynamics driving the market forward.
