As we all know, Kuwait is famous for its oil reserves. First oil reserves were discovered in 1938, and since then Kuwait has grown. Kuwait has steady inflation, the budget is growing and that is why real estate market trends are going up as well. Besides the oil economy, real estate is the main non-oil economy in Kuwait. In the second quarter of 2018, sales were higher and prices have been a little lower in the investment sector. If you are looking to relocate to Kuwait (Asia), this might be a good moment to start looking into houses and apartments, since it is expected for the prices to be steady.
Real estate market trends in 2018
In 2018, the real estate sector has a lower income than in 2014, when the real estate business was flourishing. The reason behind that is simple- oil prices were lower in 2014. Also, since the government is controlling large portions of territory and performing drilling operations, we can freely say that is quite hard to grab a piece of land in Kuwait. Before we go further with the analysis you should know that the government has split land use into 3 categories.
- Residential use
- Investment use
- Commercial use
Government is also controlling and deciding when and how the land can be reclassified. Also, Kuwait government is working really hard to expand the real estate market and it is working that through several agencies whose role is to support this. The Kuwait Investment Authority (KIA), the Kuwait Credit Bank (KCB) and the Public Authority for Housing Welfare (PAHW) are all important in growing the real estate market. Also, they are changing the real estate market trends in 2018.
Living as an expat in Kuwait
If you want to move to Kuwait and you are exploring your options, you should know that living in Kuwait might not be as easy as you think. There are some political debates about expats living in Kuwait and different propositions. But, when we look at the numbers more than 70% population are expats. You should always keep an eye the news in Kuwait and try to be up to date with political news and possible taxes. This way, even your relocation there might be smoother.
There is the high demand in the housing real estate. This could be a good year to invest money in Kuwait. Real estate market is pretty stable and in the recovery. So, if you are already looking into real estate listings keep in mind that you will have to ship your belongings. And air freight might be a good option, since this way you will receive your belongings rather fast. The airline is always easier especially in Kuwait, and you can start planning your new home. We can advise you to make decisions after some good thinking, but keep in mind that there is just up to 10% of residential land and that Kuwait is changing its picture really fast.
Should you invest in real estate in Kuwait?
If you are looking into real estate market trends in Kuwait you can see that they are going up. The market is in recovery and the government is doing their best to bust the market. There are different plans and ideas regarding this. As we mentioned you need to always keep an eye on the news. This decision is not an easy one to make if you are planning to start a new life in Kuwait. A good thing before doing any of this you should search for a job.
Should you be worried about possible taxes for expats?
As we mentioned there are always some different ideas, plans that different politicians are trying to push. All of this is coming since there are more and more expats in Kuwait. They are worried about their country. But you shouldn’t worry. You should just try to inform yourself regularly and always be sure that you have some money on the side. That way, you can avoid any additional costs, since you are going to spend a lot of money on the overseas transport of your belongings.
Renting an apartment or house in Kuwait
If you are thinking about renting a property in Kuwait until you find the perfect home to buy there are some things you should pay attention to. Real estate market trends are changing and you can expect a little bit higher prices, so you should speed up the process. But, just in case if you plan to rent an apartment in Kuwait, you should know that you can look for it online and in the newspaper. Also, you can always hire a rental agent. Also, the contract will be in Arabic and English. Keep in mind, that the Arabic version of the contract is enforceable in a court of law. So, it would be a good idea to find someone who can translate it for you so you can read all the small letters.
How to move to Kuwait?
Well, this is one of the bigger issues people have. It is a long distance move, different laws, different customs – it can be hard to adjust. Also, moving here can be quite expensive. So, to save some money you can do shipping your belongings by sea. That way, you will save some money and your budget will be bigger and you can spend money on other things. The only downside is that your belongings will travel a little bit longer. But if you plan to move larger items – this can be your only solution. So, the best thing you can do – you can hire a moving company. They can help you with all the possible issues.
Is it expensive to hire a moving company?
It might seem that you can manage everything on your own, but it can be much easier to hire a moving company to help you. They have experience and they know all the law regulations. And, although it might seem that you will spend more by hiring them, you will actually save some money and cut unnecessary expenses.