Kuwait’s recent landmark reforms in its real estate sector - especially with regard to industrial projects where foreign investors have been permitted to obtain up to 100% ownership - is likely to drive the property prices to a new high, reported Arab Times, citing an industry expert.

 

The government, which controls over 90% of the country’s land, has historically restricted foreign investment to protect local ownership. 

 

However, new measures now allow investors to acquire land more easily through corporate investment funds and portfolios, with provisions enabling up to 100 percent ownership in industrial projects under certain conditions, stated the report. 

 

The government’s easing of investment restrictions marks a significant shift in Kuwait’s real estate landscape, balancing efforts to encourage foreign investment while addressing the challenges posed by rising costs.

 

These changes are part of Kuwait’s broader strategy to attract foreign capital and stimulate economic growth, it added.

 

These landmark reforms, aimed at simplifying land ownership for investors are set to reshape the market and also contribute to a sharp rise in land prices, said Kuwaiti real estate expert Qais Al Ghanim.

 

He warned about the astronomical rise in real estate prices in Kuwait and its negative impact on domestic investment activity, said the Arab News report.

 

"Property prices have surged significantly, with some 1,000-sq-m plots soaring to KD3 million ($9.7 million)," stated Al Ghanim. 

 

"Construction costs, which range from KD1 million to KD1.5 million, push the total value of completed buildings to between KD4 million and KD5 million. The rapid escalation in prices is raising concerns about affordability and the impact on domestic investors’ ability to participate in the market," he added.