Middle East

Kuwait’s control over land spurs rising real estate prices: Unionist

By Majd Othman

Kuwait: According to a recent study, the average Kuwaiti citizen repays the funds given to buy a Kuwaiti home in installments each month, according to Marmore Mena Intelligence, which is part of the Kuwait Financial Center Company (Markaz). It takes about 16 years.

According to former Minister of Housing Adel Al-Sabeeh, the housing problem has become a serious and complex issue, especially in 2021 with about 140,000 housing requests in Kuwait, which will require about 28 billion KD to be realized.

Qais Al-Ghanim

The Kuwait Times spoke to the former secretary of the real estate union Kais Arganim to discuss Kuwait’s housing issues. “The housing problem faces several problems in Kuwait. Most importantly, the government does not pass a law supporting the” liberation “of residential land to prevent continued rises in real estate prices,” he said. Explained.

“Especially due to the lack of land, prices are rising because there are no legislative amendments such as the Real Estate Development Act or the Real Estate Financing Act to suit the current situation,” Ganim said. “The government isn’t interested in solving the housing problem and doesn’t consider it a priority,” he added.

According to the survey, the average price of housing in Kuwait is 15.8 times the average annual income of citizens, higher than the average price of housing in Dubai (4.4), Abu Dhabi (4.5) and Riad (2.8), and even higher in London (14.5). And New York (9.9), the most famous and desirable places in the world.

Ganim commented on why real estate prices are different compared to other countries. “These countries have laws and laws that help provide land to the private sector to develop and build projects, but no such law was passed in Kuwait,” he said. I did.

Ganim talked about the solution to the housing problem. “The only solution to the housing problem is for the government to pass a law to” free “the land and organize the process to increase supply,” he said.

“The Parliament also puts out a law that restricts private companies from dealing with residential land or building homes in private residential areas in the name of limiting speculation and monopolies and controlling prices. It has limited the role of the private sector in the housing business, but these laws have not achieved anything and current prices support this, “Ganim said. “These laws have failed the housing problem due to lack of specialized research and research.”

Ganim points out that the government has not conducted extensive research or research to provide a true solution to the housing problem, and the government has housed for spending pressure and the provision of streets, buildings and services to new areas. He added that he had no intention of solving the problem.

https://www.kuwaittimes.com/kuwait-govts-hold-over-lands-spurs-real-estate-price-increases-unionist/ Kuwait’s control over land spurs rising real estate prices: Unionist

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