The Kuwaiti government through the Public Authority for Housing Welfare (PAHW) is planning to secure housing care for Kuwaiti citizens while also reducing the period of providing them with adequate housing.
The government is creating a long-term development which is based on the completion of five major construction projects implemented by the PAHW, including the establishment of integrated cities linked to the provision of infrastructure, energy supplies and services. Furthermore, it is also aimed at reducing the list of registrants on the waiting list who have reached 87,828 applicants, as recorded at the latest statistics announced by PAHW.
According to the official report, the Kuwaiti government has set aside approximately 336 million dinars (USD 1.09 billion) for the implementation of these projects in the first half of the fiscal year 2019/2020. This will result in the provision of 111,400 housing units. Meanwhile, an estimated 44.4 million dinars or more than 13% of the total sum allocated for fiscal year 2019/2020 will be spent on the program.
Construction works of the section on housing units and roads at the Jaber Al-Ahmad City project have reportedly ended and is left with only the project’s handover and operation. The project is estimated to provide about 25,000 housing units. Its implementation phase has reached about 95%, indicating that the entire project is currently in the handover phase.
In the meantime, it is reported that the 45,000 housing unit project in South Saad Al-Abdullah City, as well as the 9,600 housing unit project in South Sabah Al-Ahmad City are behind schedule. This is due to some challenges in project modifications or the implementation of other entities for necessary infrastructure works, beside the presence of some obstacles on the project site.
As for Abdullah Al-Mubarak suburb project, progress is indicated in the overall completion rate with an increase of 11% as of the beginning of 2020. This brought the total completion rate to 45.7%, notably after several technical obstacles have been resolved at the project site in the previous phase.
Lastly, a part of the housing units and roads on the 2 billion dinars project of Al-Mutlaa Residential City is estimated to be completed this year, while the part of services and public buildings is projected to be completed in 2023.
Generally, the real estate sector in Kuwait has continued to show its positive trajectory. It is recorded sale transactions worth KWD 3.7 billion in 2019, presenting the second-highest level since 2015.
The number of real estate transactions rose by 6.4% year-on-year (YoY) in 2019 to a total 6,765, the highest number since 2016. This significant growth was boosted by varied performance in all real estate sectors.
It is important to note that private residence sales have promoted their upward performance, rising by 4% QoQ and by 24% YoY. Meanwhile, sales in the investment and commercial sectors witnessed a decline on a quarterly basis by 4% and 29%, and on an annual basis by 41% and 32%, respectively.