The volume of real estate transactions in Kuwait witnessed a remarkable growth for FY 2025 surging to hit KD4.58 billion ($15 billion) distributed over 6,086 transactions, compared to about KD3.73 billion resulting from 4,950 transactions the year before, thus recording a 23% year-on-year growth, according to a new report by Kuwait International Bank (KIB).

The KIB trading data showed that the increase included various real estate sectors, whether (investment, residential, commercial or others), as a result of several overlapping factors. 

According to the report, the current trend of investors is more focused on freehold properties, especially in the investment and commercial sectors, driven by the recently issued government decisions that came into effect and contributed to the revitalisation of the market.

"This positive performance reflects the confidence of investors, driven by several factors, most notably the balance of supply and demand, and the availability of cash, which played a pivotal role in stimulating investment activity within the real estate market, during 2025," remarked Eng. Bassel Salem, the Real Estate Consultant in the Real Estate Department.

On the residential sector, KIB report said it witnessed an increase in the number of deals for 2025 which soared to 4,217 deals compared to 3,527, due to several reasons, most notably the drop in prices in private housing areas by between 10% and 20%, in addition to the issuance of government decisions.

This included the entry into force of the White Lands Decision aimed at ending the monopoly, as it stipulates the imposition of progressive financial fees on non-independent lands with an area of more than 1500 sq m, starting at a value of KD10/sqm and ending at a value of KD100/sqm, and the legislation regulating real estate finance, including the law on the prohibition of mortgages for private housing and the entry of the real estate developer, have contributed to stimulating activity in this sector.