CRISIS IN THE COMMERCIAL AND REAL ESTATE SECTOR IN KUWAIT, MANY SHOPS ARE EMPTY

  • 12/01/2022

Kuwait City:  A number of shops across the country have been forced to sign up for rent in Kuwait due to the ongoing financial crisis. The Covid epidemic and its repercussions on commercial operations have led to such a situation even in some strategic places. Real estate experts describe this crisis-ridden genius for commercial sites as a retreat.  


High supply and low demand in the commercial real estate sector have significantly reduced this retreat phenomenon, which has been on the rise in the last years before the epidemic. Except for a few strategic places, most of them are located in the heart of the city, say real estate experts. For example, in the eighties the empty store in Manak Market was worth more than two million dinars, now it is between 35,000 and 70,000 dinars. He added that this indicates that the gap between supply and demand is widening.

The vacancy rate in commercial real estate currently stands at 5 to 10 percent, which happened during the global financial crisis, and the commercial sector in Kuwait is still attractive to investors, earning 6 to 7 percent, which real estate experts say is very good compared to current banking gains.

In some commercial markets the rent per meter has increased by about 60 per cent. The value of the vacancies was sometimes equal to or greater than the value of the property itself. But in the wake of the continuing economic crisis that has befallen Kuwait, the most recent of which is the corona crisis and its impact on trade activity and the decline in purchasing power, all of which have largely eliminated this phenomenon.

Related News

Discounts Don't Affect Return/Exchange Rights
  • 08/02/2025
Kuwait Arrests Reckless Driver After Viral Wedding Video
  • 08/02/2025
Shifa Al Jazeera Medical Group to Host Shifa Excellence Awar ...
  • 08/02/2025
Kuwait Bans Water Pistols and Balloons
  • 07/02/2025
Kuwait Tops Global Hunger Index 2024 as Least Hungry Country
  • 04/02/2025
MoI: Implementation of new traffic fines on April 22
  • 04/02/2025
Kuwait Council of Ministers Holds Weekly Meeting at Bayan Pa ...
  • 04/02/2025
Kuwait population increases every 5 minutes
  • 03/02/2025
Kuwait Stabilizes Market Ahead of Ramadan
  • 29/01/2025
Kuwait Arrests Egyptian Expat for Forging Medical Documents
  • 29/01/2025
Kuwait Ministry of Education Cuts School Bag Weight by 50%
  • 27/01/2025
Security campaigns in Jleeb and Ahmadi
  • 27/01/2025