Kuwait’s housing minister has called on the private sector to help tackle a looming housing crisis, where demand is far outstripping the supply of new homes after decades of state management of the sector, reported Reuters.

 

The housing authority said requests have reached 105,000 and are rising at 3% annually, with demand seen at 197,000 by 2035, a presentation showed on Wednesday.

 

According to its constitution, the oil-rich state is responsible for assisting all Kuwaiti families in obtaining housing. However, it has struggled to meet rising demand and now many are forced to wait for years for accommodation, stated the report.

 

"The private sector today is a true partner in solving this problem, and the reliance now is on you," remarked Housing Minister Abdulatif Al Meshari while addressing a conference attended by hundreds of representatives from private real estate companies and local and foreign banks.

 

The government is currently restructuring the Public Authority for Housing Welfare, which for decades has been the executive arm for providing homes to its 1.5 million citizens.

 

"Now I will be the regulator, I will follow up with you, follow up on the projects and the quality, but the core of the matter is with you," stated the minister.

 

Kuwait last week opened pre-qualification for foreign and local private firms to develop three housing projects across four areas covering 4.15 million sq m under a real estate development law approved in 2023 and enacted this month, said the Reuters report.

 

The 30-year contracts cover design, financing, construction, operation and the sale of housing units to citizens, with four years for building and 26 years for investment, while non-residential assets will be transferred to the government, it added.-TradeArabia News Service