Everyone is wondering what will happen to the real estate market in Kuwait after this summer. People in Kuwait are worried that a lot of expats are leaving Kuwait for good. Most of those who are leaving for good were either laid off from the government or from private companies. The rest can’t afford to stay in Kuwait anymore, because it is getting extremely expensive. A lot of those people said that their kids school tuition is ridiculous and having their kids go back to their homes will save them so much. I don’t blame expats for leaving Kuwait, and I understand how expensive Kuwait became the past 2 years. The government increased the prices of gas, electricity, water, and medical fees. Kuwait is at a stage where they need the additional income due to the low oil prices for the past 3-4 years. I believe rents will be lower in residential towers, so after the summer will be a great time to negotiate. Even in commercial towers you see vacancy increasing, but landlords don’t want to lower prices. You see companies leaving their offices in Kuwait City, but the landlord doesn’t want to drop their rent prices. They would rather keep the office empty for a whole year or more, and not lower their pricing and have someone rent it. I realized that landlords in Kuwait have so much ego and most of them aren’t logical at all. Even the listed companies operates the same exact way. I can’t believe that they would rather satisfy their ego rather than the shareholders.
“Prices will continue to drop and expats should negotiate their rents and get better deals because vacancy is increasing and will continue to increase.”