Kuwait Property Market Gets a Fee-Fueled Jolt

Kuwait’s property market is beginning to move after years of stagnation, economist Nasser Al-Mutairi says, with progressive fees forcing large landowners to release undeveloped residential plots.

The changes followed the enforcement of Law No. 126/2023 at the beginning of March. The law cut the freehold area citizens may own from 5,000 square meters to 1,500. Landowners holding more than the permitted area face fees designed to rise over time, encouraging them to sell excess land rather than keep it idle.

Al-Mutairi said the policy has increased the supply of residential land, reduced speculation and transferred hundreds of undeveloped plots into direct sales. He said greater choice has helped stabilize prices and produce a relative improvement for serious buyers. The measures also targeted fictitious transactions and artificial speculation, which had pushed market values higher.

The law’s effects extend beyond land sales. Al-Mutairi said the increased pace of private construction has supported contractors and building-material suppliers, while helping shorten waiting times for housing applications. Fees collected by the Ministry of Finance start at KD 10 per square meter above the permitted limit and increase by KD 30 each year until reaching KD 100.

Restrictions on companies and individual institutions owning, selling or mortgaging private housing plots have also limited the role of large pools of investment money. Banks may finance only one residential property for a client who does not already own a home, keeping the private housing sector focused on citizens’ housing needs rather than investment.