Are Houses Expensive in Kuwait? A Comprehensive Look at the Housing Market in Kuwait - ARAB MLS (2024)

Overview of Housing Market in Kuwait

The housing market in Kuwait has experienced steady growth in recent years. The country’s real estate market is recovering and gathering pace following supportive governmental measures and the rebound in oil prices. Due to rapid vaccination, disruptions from the COVID-19 pandemic are expected to smoothen in the near term.

Here are some key points to note about the housing market in Kuwait:

• The real estate market in Kuwait is projected to grow by 1.46% (2024-2028), resulting in a market volume of US$0.89tn in 2028.
• The average price per square foot to buy an apartment in the city center is approximately KWD 1,000, while the price per square foot to buy an apartment external to the city center is approximately KWD 700.
• The price to buy an apartment in Kuwait varies depending on the property’s location, size, and amenities.
• Kuwait’s construction and real estate sectors rebounded in the years preceding the COVID-19 pandemic following the 2017 unveiling of New Kuwait 2035, the government’s overarching development blueprint, heralding an extensive infrastructure pipeline.
• Kuwait’s property market has seen sustained growth in recent years, with a host of new residential and commercial properties entering the market.
• The accommodation cost in Kuwait varies depending on the type of housing and location. Apartment buildings are the most common form of housing in Kuwait, and the cost of renting or buying an apartment varies by location and size.
• The average price to buy an apartment in Kuwait is approximately KWD 150,000 while renting a one-bedroom apartment in the city center is approximately KWD 350 per month.

Overall, the housing market in Kuwait is growing steadily, with new properties entering the market and prices varying depending on location, size, and amenities.

Cost of Living in Kuwait Compared to Housing

Regarding housing costs in Kuwait, the prices can vary depending on the area and type of housing. A one-bedroom apartment in the city center can cost somewhere between 250-400 KWD per month, while a three-bedroom apartment may cost around 500-1000 KWD monthly. The cost of living in Kuwait is, on average, 40.7% lower than in the United States, which makes it an affordable place to live.

Utilities and Monthly Bills

The cost of utilities in Kuwait is relatively low. Electricity, water, and gas bills for an 85m2 apartment can cost around 25 KWD monthly. Internet and heating bills are also reasonably priced, with an average monthly cost of around 20 KWD.

Food and Groceries

The cost of food in Kuwait is generally affordable. Markets offer reasonably priced fresh produce such as rice, milk, eggs, local cheese, apples, tomatoes, and potatoes. A loaf of fresh white bread costs around 0.35 KWD, while chicken fillets and beef rounds cost around 2.50 KWD and 3.50 KWD per kilogram, respectively. A banana costs around 0.10 KWD, while oranges, onions, and lettuce cost around 0.20 KWD per kilogram.

Transportation Costs

Public transportation in Kuwait is limited, and most people rely on private cars. A Volkswagen Golf or a Toyota Corolla sedan costs around 5,000-7,000 KWD. A one-way ticket on public transportation costs around 0.25 KWD, while a monthly pass costs around 12 KWD. Taxi services are also available, and a start fare costs around 1.50 KWD, while a one-mile ride costs around 1.50 KWD. Waiting time costs around 0.30 KWD per hour, and gasoline costs around 0.07 KWD per liter.

Entertainment and Dining

Kuwait offers a variety of entertainment options, including restaurants, cinemas, and cafes. A cappuccino costs around 1.50 KWD, while a meal for two people at a mid-range restaurant costs around 12 KWD. A three-course meal at a restaurant costs around 20 KWD, while a meal at McDonald’s costs around 2.50 KWD. A domestic non-alcoholic beer costs around 0.50 KWD, while an imported non-alcoholic beer costs around 1.00 KWD. A co*ke or Pepsi costs around 0.25 KWD.

• The cost of living in Kuwait is 40.7% lower than in the United States.
• A one-bedroom apartment in the city center can cost around 250-400 KWD monthly.
• Electricity, water, and gas bills for an 85m2 apartment can cost around 25 KWD monthly.
• Internet and heating bills cost around 20 KWD per month.
• Fresh produce such as rice, milk, eggs, local cheese, apples, tomatoes, and potatoes are reasonably priced.
• A loaf of fresh white bread costs around 0.35 KWD.
• Chicken fillets and beef rounds cost around 2.50 KWD and 3.50 KWD per kilogram, respectively.
• A banana costs around 0.10 KWD, while oranges, onions, and lettuce cost around 0.20 KWD per kilogram.
• A Volkswagen Golf or a Toyota Corolla sedan costs around 5,000-7,000 KWD.
• A one-way ticket on public transportation costs around 0.25 KWD, while a monthly pass costs around 12 KWD.
• Taxi services cost around 1.50 KWD for a start fare and 1.50 KWD for a one-mile ride.
• Waiting time costs around 0.30 KWD per hour, and gasoline costs around 0.07 KWD per liter.
• A cappuccino costs around 1.50 KWD, while a meal for two people at a mid-range restaurant costs around 12 KWD.
• A three-course meal at a restaurant costs around 20 KWD, while a McMeal at McDonald’s costs around 2.50 KWD.
• A domestic non-alcoholic beer costs around 0.50 KWD, while an imported non-alcoholic beer costs around 1.00 KWD.
• A co*ke or Pepsi costs around 0.25 KWD.

Renting vs. Buying Property

Rental Market Overview

Regarding renting property in Kuwait, the rental market is dynamic, and prices can vary over time. According to the search results, renting an apartment in Kuwait is quite expensive, with prices ranging from around $1,000 to $2,500 per month. However, the rental prices in central locations can be relatively higher. A one-bedroom apartment in the city center may cost between KWD 400 to KWD 800 per month.

It is important to note that the rental market in Kuwait offers a range of options that can suit multiple budgets and preferences. Renting a home in Kuwait can be a great option for those not ready to commit to a long-term purchase, as it permits more flexibility and can be more cost-effective in the short term.

Homeownership Costs

On the other hand, buying a property in Kuwait can be quite expensive. Prices for buying a property in Kuwait can range from $200,000 to over $1 million. However, it is important to note that the cost of buying a property in Kuwait can vary depending on the property’s location, condition, and size.

If someone is considering buying a property in Kuwait, they should also consider the additional costs of homeownership. These costs can include mortgage interest rates, varying depending on the lender and the mortgage terms. The cost of maintaining and furnishing a home should also be considered.

To summarize, here are some key points to take into account when it comes to renting vs. buying property in Kuwait:

• Renting a home in Kuwait can be better financially in the short term and offers more flexibility.
• The rental market in Kuwait offers a range of alternatives that suit different budgets and preferences.
• Buying a property in Kuwait can be expensive, ranging from around $200,000 to over $1 million.
• The cost of buying a property in Kuwait can vary depending on the property’s location, condition, and size.
• Additional costs that come with homeownership should also be considered, such as mortgage interest rates and the cost of maintaining and furnishing a home.

Expat Life in Kuwait

Moving to a new country can be a daunting experience, especially when adapting to a new culture and lifestyle. Expats moving to Kuwait can expect a unique experience as they adjust to the country’s traditions and customs.

Cultural Adaptation

Expats moving to Kuwait may experience culture shock as they adjust to the country’s customs and traditions. Kuwait is an Islamic country, and respecting and following Islamic laws and traditions is essential. Expats should dress modestly, especially when visiting religious sites. English is widely spoken, but learning some Arabic phrases to communicate with locals is essential.

Healthcare and Insurance

Kuwait has a public healthcare system provides free healthcare to Kuwaiti nationals. Expats can also access public healthcare services but may have to pay for some treatments. It is advisable to have health insurance when living in Kuwait to cover the cost of medical treatment.

Financial Considerations for Expats

Expats living in Kuwait can expect a high standard of living, but the cost of living can be expensive. The average monthly net salary in Kuwait is around KWD 800, which can vary depending on the industry and job position. Expats should also be aware of the tax system in Kuwait, which is based on a flat rate of 15% for all income levels.

Here are some financial considerations for expats moving to Kuwait:

• The currency in Kuwait is the Kuwaiti Dinar (KWD), and it is pegged to the US dollar.
• Expats should research the cost of living in Kuwait and budget accordingly.
• Accommodation can be expensive, especially in popular areas like Al Ahmadi.
• Expats should open a local bank account to manage their finances and avoid high transaction fees.

Overall, expats moving to Kuwait can expect a unique experience as they adjust to the country’s traditions and customs. By being respectful of the local culture, having comprehensive health insurance, and managing their finances wisely, expats can enjoy a comfortable lifestyle in Kuwait.

Family and Education

Schooling Options

For families with children, education is an important factor when moving to Kuwait. There are several options available for schooling, including

• Childcare: There are a variety of childcare options available in Kuwait, including nurseries and daycares. Prices for these services can vary depending on the location and quality of the facility.
• Preschool: Preschool options are available for children aged 3-5 years old. These schools offer early education and preparation for primary school. Prices for preschools can range from affordable to expensive, depending on the quality of the school.
• International Primary School: For families looking for an international education, there are several international primary schools available in Kuwait. These schools offer a variety of curriculums, including British, American, and International Baccalaureate. Prices for these schools can be expensive, with some charging up to 10,000 KWD per year.

It is important to note that education costs can be significant for families living in Kuwait. However, the quality of education is generally high, and various options are available to suit different budgets and preferences.

Clothing and Personal Items

Apparel Costs

Regarding clothing and personal items, Kuwait offers a wide range of options for both branded and non-branded items. The cost of clothing can vary significantly based on personal style and preference. Here are some estimated costs for clothing items in Kuwait:

• A pair of jeans from a high-street store costs around 20-50 KWD.
• A summer dress from a high-street store costs around 40-80 KWD.
• A pair of Nike running shoes costs around 35-70 KWD.
• A pair of men’s leather business shoes costs around 50-100 KWD.

It is important to note that these prices are approximate and may vary depending on the brand and quality of the items. High-end designer clothing can be costly, with a designer dress costing around 100-200 KWD or more. However, affordable clothing options can be found at local stores, with t-shirts costing around 5-15 KWD.

Kuwait’s desert environment has four distinct seasons, with hot and dry summers along with very short winters. Therefore, it is important to invest in clothing that is appropriate for the climate. Lightweight and breathable fabrics are recommended for summer, while warmer clothing is necessary for winter.

In conclusion, while clothing costs in Kuwait can vary depending on personal preference and brand, affordable options are available for those on a budget. It is important to invest in appropriate clothing for the climate to ensure comfort and safety.

Leisure and Sports Expenses

Regarding leisure and sports expenses in Kuwait, various options cater to different budgets. Here are some of the most common expenses related to sports and leisure activities in Kuwait:

• Fitness club membership: Joining a fitness club is a popular way to stay fit and healthy in Kuwait. The cost of a fitness club membership can vary depending on the club’s location, amenities, and services. On average, a monthly membership fee can range from KWD 20 to KWD 50.
• Tennis court rent: Tennis is a popular sport in Kuwait, and there are many tennis courts available for rent throughout the country. The cost of renting a tennis court can vary depending on the location and the time of day. On average, the cost of renting a tennis court for an hour can range from KWD 5 to KWD 15.
• Sports and leisure activities: There are many sports and leisure activities available in Kuwait, including swimming, golf, and horseback riding. The cost of these activities can vary depending on the location and the time of day. On average, the cost of a swimming pool membership can range from KWD 30 to KWD 50 per month, while the cost of a round of golf can range from KWD 20 to KWD 50.

Generally, sports and leisure expenses in Kuwait can be affordable, especially if one is willing to shop around for the best deals. However, it is important to remember that prices can vary depending on the area and the time of day, so it is always a good idea to research before purchasing.

Telecommunications

Kuwait has a well-developed telecommunications infrastructure with various services available to its residents. Here are some key points to note:

• Mobile phone plans are widely available, with various service providers offering competitive packages.
• As of May 2022, Kuwait ranked fifth globally in Ookla’s Speedtest Global Index for mobile performance, with a 104.47 Mbps median speed.
• The country’s three main telecom operators are STC (Saudi Telecommunications Company), Ooredoo, and Zain.
• STC recorded around 66 million USD in net profits and 460 million USD in revenues in the first half of 2019, with a 3.1% EBITDA growth reaching 63.5 million USD. Its shareholders are STC with 26%, the Kuwaiti government with 24%, and public shareholders with 50%.
• Ooredoo was hailed as the fastest operator in 2021.
• Zain completed the first 5G data call in Kuwait in 2018 and has continued to expand its 5G network since then.

Residents of Kuwait can expect to have access to a range of mobile phone plans with competitive pricing. The country’s telecom infrastructure is well-developed, with mobile speeds ranking among the highest in the world. With three major telecom operators, residents have various options when selecting a mobile phone plan.

Frequently Asked Questions

What is the average cost of a house in Kuwait?

• As of 2021, the average price per square meter for residential properties in Kuwait ranges from KWD 500 to KWD 800.
• The cost of a house in Kuwait varies depending on the property’s location, size, and quality.

How does the cost of living in Kuwait affect housing prices?

• The cost of living in Kuwait is relatively high compared to other countries.
• This means that the cost of housing in Kuwait is also high.
• The high cost of living in Kuwait is due to factors such as the high cost of imported goods, high demand for housing, and the country’s oil-based economy.

What factors contribute to the high price of homes in Kuwait?

• The high demand for housing in Kuwait is one of the main factors contributing to the high price of homes.
• Another factor is the limited land availability in Kuwait, making it difficult to build new homes.
• Additionally, the country’s oil-based economy has led to high levels of wealth, which has driven up the price of real estate.

Can expatriates purchase homes in Kuwait?

• Expatriates are allowed to buy apartments or commercial properties in designated areas in Kuwait.
• However, they are not allowed to buy land in the country restricted to Kuwaiti citizens.

What are the most expensive areas to buy property in Kuwait?

• The most expensive areas to buy property in Kuwait are typically the more affluent neighborhoods, such as Salwa, Salmiya, Abu Al Hasaniah, Al Shaab Al Bahri, and Bneid Al Gar.

What housing issues are currently affecting the real estate market in Kuwait?

• One of the main issues affecting the real estate market in Kuwait is the oversupply of apartments.
• This has led to a decrease in demand for new apartments, which has resulted in lower prices.
• Additionally, the COVID-19 pandemic has significantly impacted Kuwait’s real estate market, with many people delaying their plans to buy or sell property due to economic uncertainty.

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