Kuwait signs $140m contracts for Al Metlaa development

Alamy via Reuters

• New district north of Kuwait City
• Real estate downturn in 2023
• Property investment appeal fell

Kuwait’s Public Authority for Housing Welfare (PAHW) has signed two contracts worth KD42 million ($140 million) to construct public buildings in Al Metlaa, a new residential district north of Kuwait City.

Nurseries, stores, schools and shops will be included, state news agency Kuna reported.

Electricity connections have been provided for 109 buildings in the district, the report added, citing PAHW officials.

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The authority is currently working on a number of projects including a medical centre, a supermarket, a police station, a municipal building and a post office. 

According to Kuwait International Bank, the country’s residential real estate market experienced a notable decline in 2023, reported English language daily Arab Times.  

The number of real estate transactions dropped to just over 3,000 with a total worth of KD1.2 billion.

This marks a significant decrease of 30 percent compared to 2022 which saw almost 4,400 transactions valued at KD2 billion, Ministry of Justice real estate registration statistics reveal.

• Kuwait’s record performance tempered by costs
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• Egyptian-Kuwaiti venture powers up new investments

A number of factors contributed to this decline including the rising discount rate of the Central Bank, which reduced the attractiveness of investing in residential properties, and higher construction costs.

Kuwait’s property sector could soon experience increased business opportunities following the proposal of a new law allowing foreigners to buy.

Almost 230 new licenses were issued to land and property sales agents in Kuwait last year, bringing the total to just under 1,600 by December, an increase of 17 percent from 2022.

Data from the ministry’s real estate department also shows that 295 licenses were renewed last year while 84 were revoked.