Media Centre

Kuwait’s real estate sees shift in investor behavior

KUWAIT CITY - Amidst the transformations witnessed in the local real estate market, the performance in January 2026 reflected a clear shift in investor behavior and investment trends, with notable variations across sectors in terms of the number and value of transactions.

While the volume of transactions increased, the total value remained stable, indicating a repositioning within the market dynamics.

The local real estate market recorded 442 transactions in January 2026, with a total value of KD251.8 million, compared to 405 transactions valued at KD252.4 million in January 2025.

This increase in the number of transactions, along with stability in value, reflects a change in the nature of transactions and a trend among investors towards smaller, more diversified investment volumes. Private real estate accounted for the largest share of total transactions, recording 307 deals worth KD133.9 million, compared to 282 deals worth KD105.9 million in January 2025 -- 8.8 percent increase in the number of deals and a 26.4 percent increase in value.

This performance confirms the continuous growth of demand for private housing, supported by genuine housing needs, improved transaction activity, and the implementation of the law against land speculation.

The number of investment transactions reached 114, valued at KD74.6 million, compared to 107 transactions worth KD119.2 million during the same period last year.

Despite the 6.5 percent increase in the number of transactions, the value recorded a significant decline of 37.4 percent, reflecting investors’ shift towards lower-value or mid-sized properties amid the reassessment of returns and a changing risk profile.

The commercial sector witnessed a huge leap in January 2026, with eight transactions totaling KD27.3 million, compared to three transactions totaling KD5.2 million in January 2025 -- 166.6 percent increase in the number of transactions and 425 percent increase in value, indicating selective activity and high-quality opportunities in this sector.

The industrial real estate sector experienced a disparity between the number and value of transactions. Twelve transactions were recorded, totaling KD11.5 million, compared to 11 transactions totaling KD14.6 million last year. This is a slight increase in the number of transactions (nine percent), but the value decreased (21.2 percent), suggesting a cautious equilibrium linked to industrial and service sector activity. One transaction was recorded in the coastal strip, valued at KD4.5 million, compared to no transaction in January 2025.

This entails the limited but notable presence of such type of property, which is often associated with selective, high-value deals. In contrast, January 2025 witnessed two transactions for warehouses valued at KD7.3 million, while no similar transactions were recorded in January 2026, indicating a decline in activity for this type of property in the current period.