Sunday, May 31, 2015

Price of rent in Kuwait to drop or is it a Joke?

The rents of apartments are starting to decline from the Tenth Area (outskirts) to Farwaniya, Salmiya and Hawally areas especially with the presence of hundreds of empty apartments in these areas.

The decline in rents has led to suggestions of annual renewal of rent contracts and allotment of ceiling in hikes as applied in Dubai, reports a local daily.A member of Union of Real Estate Owners Qais Al-Ghanim said the rents in Kuwait will not increase again in the near future, adding that analysis of the market has indicated a decline in the rents from Tenth Area to inner areas occupied by expatriates in Farwaniya, Hawally and Salmiya.

He revealed that many expatriates have sent their families back to their countries out of fear of increasing rents of apartments while investors in the real-estate industry have started selling off their assets, which are among the reasons for the declining rents.Al-Ghanim explained that the realestate investors will face additional pressures when the interest rate increases because some of the investors bought real-estate through banking subsidy under certain prices.

Therefore, their revenues will reduce with increase in interest rate, due to which many are selling off their investments to avoid risks.In the same context, sources revealed that the rent of a one-bedroom apartment has reduced from KD 230 to KD 210 while the rent of a two-bedroom apartment has reduced from KD 370 to KD 340.

They added that the demand for renting residential apartments will decrease by 60 percent compared to last year, a development which worries real-estate companies.

Is it possible??? Could it be true?? Is the rent really going down? Everyone in Kuwait has waited for the rent bubble to pop and maybe it finally has. In 2004 I was paying 180 KD for a two bedroom apartment in Fintas, my mom and sister who arrived in 2000 told me they once paid 80 KD for an apartment in Fintas! Today the rent for a tiny 2 bedroom in Abu Halaifa is 380 KD which is an increase of more than 100 KD from 2 years ago when the building was first opened.

5 comments :

  1. Where the F are THESE places????

    "sources revealed that the rent of a one-bedroom apartment has reduced from KD 230 to KD 210 while the rent of a two-bedroom apartment has reduced from KD 370 to KD 340."

    Puhleeze - tell me WHERE. This is a crock of shit. Look at any online rental portal and you can't find anything anywhere for that price.

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  2. I don't know but I'm sure they are the size of a closet and who wants to live in Farwaniya or Hawally?

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  3. This is more media propoganda and disinformation being released to make everything look peachy in Kuwait. It gets old, doesn't it?

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  4. Yep, it sure does get old. Maybe they are trying to stop all those people leaving Kuwait. On FB I see so many people leaving Kuwait and selling their furniture and cars and I've heard teachers don't want to come to this region because of the fighting so it seems like it's going to get worse before it gets better.

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  5. Beware of HorizonQ8. It's a rental company. It's a total scam. They not only charge you and landlords half half months rent. They bump up the rent 100-150 KD so they pocket the difference every month. Barbara, Agnieshka are two if their employes. Preferably deal with the owner directly.

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Comments are welcome! Personal attacks are not. Thanks!