KUWAIT: The latest data from the Ministry of Justice’s Real Estate Registration and Authentications Department indicates a significant slowdown in Kuwait’s real estate market in January 2025 compared to December 2024, excluding activity in the crafts sector and coastal strip system. Total traded real estate contracts amounted to KD 237.8 million in January, reflecting a 45.2 percent decline from KD 434 million recorded in December.

The market also registered a 9.8 percent drop year-on-year compared to KD 263.6 million in January 2024. The number of real estate transactions reached 394 deals in January, with Ahmadi Governorate securing the highest share at 130 transactions (33.0 percent of total deals). Hawally Governorate followed with 68 deals (17.3 percent), while Jahra Governorate recorded the lowest share with 28 deals (7.1 percent).

Private housing sector

The private housing sector recorded a total trading value of KD 106 million, down 27.8 percent from KD 146.7 million in December. Despite this drop, its share of total real estate activity rose to 44.6 percent, up from 33.8 percent in the previous month. The 12-month average for this sector stood at KD 124.5 million, making January’s trading value 14.9 percent below the average. The number of transactions totaled 282 deals, compared to 357 deals in December. Consequently, the average transaction value in this sector declined by 8.6 percent to KD 376,000 per deal, down from KD 411,000 in December.

Investment residential sector

Trading in the investment residential sector totaled KD 119.3 million, marking a 47.1 percent decline from KD 225.4 million in December. Its share of total market activity dropped slightly to 50.2 percent, compared to 51.9 percent in December. However, this sector outperformed its 12-month trading average of KD 104.3 million, posting a 14.3 percent increase. The number of transactions in this sector stood at 107, down from 154 deals in December. The average transaction value fell to KD 1.1 million, a 23.8 percent decline from KD 1.5 million in December.

Commercial, warehousing sectors

The commercial real estate sector witnessed a steep decline, with trading value plummeting 91.6 percent to KD 5.2 million, down from KD 61.9 million in December. Its share of total market activity fell to 2.2 percent, compared to 14.3 percent in December. The 12-month trading average for this sector stood at KD 58.9 million, making January’s figures 91.1 percent lower. The number of commercial real estate transactions dropped to just three, compared to 15 in December. Consequently, the average deal value in this sector fell 57.8 percent to KD 1.7 million, down from KD 4.1 million in December. In the warehousing sector, two transactions were recorded in January, totaling KD 7.3 million.

Year-on-year market comparison

Comparing January 2025 to January 2024, Kuwait’s real estate market liquidity declined from KD 263.6 million to KD 237.8 million, reflecting a 9.8 percent drop. This decline was driven by an 87.9 percent drop in the commercial sector and a 25.1 percent decline in the private housing sector. Meanwhile, the investment residential sector saw a notable 55.1 percent increase in trading value. — Al-Shall