Kuwait Real Estate Association has in a recent report revealed that the price to own of apartments were lower in Kuwait, compared to prices in other countries of the Gulf Cooperation Council (GCC) bloc, as well as in many countries around the world.
The report, published in coordination with the Union Real Estate Company and Mabanee Company, points out that in many high-end areas of Kuwait the price was around KD2,000 per square meter. This price included the cost of land, the cost of developing it, and the apartment price per square meter.
In a press statement, Secretary General of the Real Estate Association Ahmad Al-Duwehees explained the report is based on data gathered from hundreds of land transactions and those published by the concerned ministry on its website.
He explained that the price of land is based on which of the four categories it comes under. The first category includes land in prestigious areas — those bordering the coast and with easy access from highways and within proximity of all services.
In the second category are plots in distinctive areas, which do not directly border the sea, but are situated along the main streets with good possibility to reach the highway.
The third category includes areas without seafront, with good exits and entrances, and close to several services.
The fourth category consists of ordinary land without seafront, and lacks good exit and entrance roads and services.
Al-Duwehees explained the price of any piece of land on sale in Kuwait is per square meter based on its location and the area allowed for building. For instance, the price of land in Kuwait City is higher because the surface allowed to build for investment land is about 400 percent, whereas outside the city is 250 percent.
“For instance, the price of investment land in Salmiya could reach KD2,000 per square meter; whereas the same sized land in Hawally would cost only KD1,500. This is due to the fact that Salmiya is considered a most distinctive area compared to Hawally; thus, the high price is justified,” noted Al-Duwehees.