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Expat exodus from Kuwait brings on sluggish property market
| Published: | 26 Jul at 6 PM |
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Tagged: Property Abroad
Kuwait’s property market is in the doldrums as expat buyers and renters depart.
Once a thriving economic force in Kuwait, the emirate’s domestic property market is becoming increasingly sluggish, with the fall due mostly to regional developments. Whilst the media and the property sector attempt to put a gloss on the results, saying the lack of interest stems from Ramadan, Eid and family duties, the reality is that many expats are leaving and not being replaced by their companies.
R
eal estate agents in the sector are admitting the majority of enquiries are now from housing brokers rather than prospective owner-occupiers, with the trades themselves at a low point. They also maintain property values haven’t been affected as yet by the overall lack of interest, as there’s a dearth of prospective renters as well as buyers. Real estate agents, they state, have sufficient funds to be able to hang on for a recovery. It seems Kuwait’s recent attempts to keep hold of its high-spending expat professionals have hit a sizeable bump in the road.
It’s certain the increasing number of expats leaving the emirate has had a negative effect, especially on the rental market, with landlords planning to tighten their belts and wait out the slump. One property expert told local media the temporary recession began in May and persisted through June with no sign of a let-up. Figures for July won’t be available until late September by which time, according to local economists, the housing market should be in recovery by mid-September at the latest, but there’s little sign of any positive developments to date.
Once a thriving economic force in Kuwait, the emirate’s domestic property market is becoming increasingly sluggish, with the fall due mostly to regional developments. Whilst the media and the property sector attempt to put a gloss on the results, saying the lack of interest stems from Ramadan, Eid and family duties, the reality is that many expats are leaving and not being replaced by their companies.
R
eal estate agents in the sector are admitting the majority of enquiries are now from housing brokers rather than prospective owner-occupiers, with the trades themselves at a low point. They also maintain property values haven’t been affected as yet by the overall lack of interest, as there’s a dearth of prospective renters as well as buyers. Real estate agents, they state, have sufficient funds to be able to hang on for a recovery. It seems Kuwait’s recent attempts to keep hold of its high-spending expat professionals have hit a sizeable bump in the road.
It’s certain the increasing number of expats leaving the emirate has had a negative effect, especially on the rental market, with landlords planning to tighten their belts and wait out the slump. One property expert told local media the temporary recession began in May and persisted through June with no sign of a let-up. Figures for July won’t be available until late September by which time, according to local economists, the housing market should be in recovery by mid-September at the latest, but there’s little sign of any positive developments to date.
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