logo
Sakan: Al Ahmadi shows strongest half-year rental performance in Kuwait, while rents soften in other areas

Sakan: Al Ahmadi shows strongest half-year rental performance in Kuwait, while rents soften in other areas

Zawya12-05-2025

KUWAIT – Al Ahmadi apartments showed the strongest 6-month rental growth among governorates in Kuwait, with average rents for one-bedroom and two-bedroom units increasing by 6% and 10.9% over the last half-year to Q1 2025, according to Kuwait-based prop-tech company Sakan.
Sakan's data, which is based on its online listings database and excludes properties promoted offline, showed mixed results for the apartment market, with average rents of areas near the capital softening over the last three and six months leading to Q1.
In Hawally Governorate, the average rents of 1-bedroom, 2-bedroom, and 3-bedroom-listed flats decreased by 7%, 3%, and 1% respectively when compared to Q4 2024. Al Asimah's 2BR and 3BR average rents decreased by double digits.
From a 6-month perspective, Hawally's and Al Asimah's rental markets have both seen downward performance. Hawally apartment rents for 1BR and 4BR apartments have remained the same, while those of 2BR and 3BR have declined by 2% and 4% respectively. Al Asimah apartments have shown similar patterns except for the 1BR category, whose average rent improved by 2% over the last half-year.
But while areas near the capital have generally seen lower rents, Al Ahmadi's apartment sector saw an upward trend, driven by higher lease rates in Mahboula and Fintas districts.
Among governorates, Ahmadi apartments have shown the best quarter-on-quarter performance in terms of rents, growing by 3%, 11%, and 10% for the 1BR, 2BR, and 3BR categories, respectively.
Nearly 12,000 housing units turned over in 2024
The movement in rents can be attributed to a variety of events that have shaped Kuwait's residential leasing sector over the last six months. After the Mangaf fire, the government has cracked down on overcrowding in residential properties.
At the same time, the leasing sector is seeing the effects of the massive residential construction boom sweeping across Kuwait, driven by the government's housing program. In 2024, the Public Authority for Housing Welfare distributed 11,897 housing units in Kuwait and issued 32,204 building permits in key residential projects, namely Mutlaa, South Abdullah Al-Mubarak, and South Khaitan. Anecdotes suggest that apartments which were rented by families waiting for their homes are now having challenges finding tenants.
Home ownership is expected to increase in the forthcoming years with the anticipated introduction of the Mortgage Law, which will allow commercial lenders to provide housing loans. Once implemented, the Law is seen to encourage more lending activity in the housing sector, create a more competitive market, and potentially enable more citizens to own homes.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Dubai real estate delivers AED 54.5bln in May sales with 15% growth across sales and leasing
Dubai real estate delivers AED 54.5bln in May sales with 15% growth across sales and leasing

Zawya

timean hour ago

  • Zawya

Dubai real estate delivers AED 54.5bln in May sales with 15% growth across sales and leasing

Dubai's residential real estate market continued its impressive performance in May 2025, with both sales and leasing activity recording double-digit month-on-month growth, according to the latest report released by Betterhomes. Strong investor confidence, rising end-user demand, and consistent interest in both off-plan and ready properties have propelled the market forward. The residential sales market recorded 17,504 transactions in May, representing a 15.1% increase from April. Total sales value surged to AED 54.48 billion, up 18% month-on-month, as the average price per square foot climbed by 4.5% to AED 1,808. Off-plan transactions continued to lead the market at 57%, while the secondary market share increased to 43%, indicating a healthy appetite for ready properties. Cash vs. Mortgage buyers stood nearly even at 48% vs 52%, while investors comprised 64% of buyers, demonstrating strong belief in the future development of Dubai. Popular communities among buyers included Dubai Hills Estate, The Springs, and Jumeirah Village Triangle. Emaar remained the top-performing developer in both off-plan and title deed transactions, contributing AED 3.76 billion and AED 10.49 billion, respectively. On the leasing side, activity increased by 15.3% in May, with 33,917 lease transactions recorded. New rental contracts rose significantly to make up 42% of all leasing activity, up from 34% the month before, reflecting an influx of new tenants in the market. Average rents also increased in key areas, including Bur Dubai, which saw a 7.5% month-on-month rise, and Damac Hills 2, which grew by nearly 4%. Betterhomes reported a 10% increase in tenant leads, while average lease values climbed across all property types. Apartments leased through Betterhomes averaged AED 141,250 annually, townhouses AED 198,000, and villas AED 405,000. One to four cheque payments remained the most common rental terms among tenants. 'Dubai's property market is demonstrating a remarkable level of depth and resilience,' said Louis Harding, CEO of Betterhomes. 'This isn't just short-term momentum. It reflects long-term confidence in the city's economic direction, quality of life, and global appeal. We're seeing demand from both seasoned investors and new residents who see Dubai as a place to build their future. The fundamentals are strong, and the appetite for quality homes, both to own and to rent, continues to grow.' With strong fundamentals and a growing reputation as a global lifestyle and business hub, Dubai is increasingly seen by investors as a safe, high-yielding market in an uncertain global environment.

Saudi's Al Mozaini Real Estate to launch IPO
Saudi's Al Mozaini Real Estate to launch IPO

Zawya

timean hour ago

  • Zawya

Saudi's Al Mozaini Real Estate to launch IPO

Saudi Arabia's Hamad & Ahmad Mohammed Al-Mozaini Real Estate Company is set to launch an initial public offering (IPO) and list on the Saudi Stock Exchange (Tadawul) Parallel Market, Nomu. The company has appointed Yaqeen Capital as the arranger for the real estate firm's public subscription process. Hamad & Ahmad is the latest Saudi-based company to capitalise on the kingdom's capital market, which has seen significant growth on the back of ambitious economic reforms. The kingdom has consistently dominated the IPO activity in the Middle East. During the first quarter of the year, 12 out of 14 listings in the region originated from Saudi Arabia, according to EY. Five IPOs on the Tadawul Main Market raised a total of $1.8 billion, while seven IPOs on Nomu attracted $69 million. (Writing by Cleofe Maceda; editing by Seban Scaria)

Dubai-listed IFA hotel unit to hike capital to settle $56.5mln debt
Dubai-listed IFA hotel unit to hike capital to settle $56.5mln debt

Zawya

time3 hours ago

  • Zawya

Dubai-listed IFA hotel unit to hike capital to settle $56.5mln debt

The hospitality arm of Dubai-listed International Financial Advisors (IFA) Holding Company is set to increase its capital to settle more than KWD 17.3 million ($56.5 million) in debts. The hotel and resort unit's parent company, IFA Holding, confirmed on Wednesday that it has given preliminary approval to an offer to settle the borrowings through a capital increase. The capital hike proposal received the approval from IFA Holding's board of directors on June 11. The settlement is conditional upon the hotel firm completing the required procedures. Listed on the Kuwait Stock Exchange, IFA Hotels' core business is focused on the development, management and marketing of hotels and resorts. (Writing by Cleofe Maceda; editing by Seban Scaria)

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store