Rocketing rent prices in Kuwait

December 9, 201419 Comments

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More and more people are complaining of the increase in house rents this year. The rents have gone higher in a very short three-year time period. Some people, especially the expats, are not able to live a comfortable life with this ridiculous increase which eats into a large chunk of their salary.

Don, an expat father of two kids feels frustrated with the increasing rents. “I was sharing a three-bedroom apartment with another family, and the landlord demanded an increase of KD 45, so I decided to move into a two-bedroom apartment to pay KD 275. I still consider this rent very reasonable compared to what’s available in the market now. This was three years ago, and now I’m afraid that they will increase the rent again shortly.

By: Nawara Fattahova
Source : AlBawaba

All the prices are increasing, especially the rent, while my salary has not gone up for a long time,” he told the Kuwait Times. Economic analyst Hajaj Bu Khadour considered the high and rapid increase of rent as a negative phenomenon affecting the economy badly. “The rents have increased about 27 percent during the last three years, while the normal growth rate is about 8 percent. I blame the government in the first place for the wrong decisions they have taken and the parliament as well for their legislation, which is encouraging inflation, and not providing stability or supporting the economy.

So this increase is a result of these decisions taken over the past few years,” he pointed out. “There should be a proper economic view to manage the country. Wrong laws damage the economy. It affects inflation in general, and also includes the prices of property, food, and so on.

This huge increase may also cause imbalance and social problems in the country. For instance, increasing the housing loan to KD 100,000 will satisfy the citizens but on the other hand, the prices of properties have also increased. Early retirement also affects this issue. There should be laws set to regulate and limit this rise,” added Bu Khadour.

Ali, who works with a real estate company in Ahmadi, admitted the rapid increase in rents can be attributed to competition. “Everything is increasing, and rent is part of the necessary things that are subject to increase. We have competition from other companies, so our prices should be similar. Any increase in rent depends on the location and the age of the building, so the landlord doesn’t set certain percentage for increase,” he said.

The demand and supply always regulates the price and there is a high demand. “We deal with buildings in Mahboula. Most of the buildings that we are managing are rented for big companies, especially the oil companies, and they rent the whole building for their employees, and then accommodate six or more employees in one apartment. They change the apartment’s design and omit the living room.

The owner increased some apartments to about 18 percent, so the two-room flats in old buildings now cost KD 210, while other new flats that are smaller cost about 280. The companies create this problem and if they stopped doing it, the prices will definitely drop, said Ali. Salah, who owns two houses also blamed the government for this problem. “The government is the main reason for the rent increase and not the landlord. I should go with the market, and since my neighbors increased the rent, I have to increase it as well. The rent was KD 300 and I increased it recently to KD 600 to be on par with as the neighbors.

I think this is logical, as the high price of land is the main reason. So if somebody bought the land for KD 500,000 and set up the building for KD 100,000, he can’t rent the apartment for KD 150. He should get the money that he spent back,” he explained. According to him there are solutions to this problem. “We have a housing problem in Kuwait.

There are 100,000 people waiting for their turn to receive the governmental house. All these Kuwaitis are living in rented houses, so the demand is high and supply is low. As long as there are tenants who have no option but to rent, the landlord will keep increasing the price,” he said. “The government is only using about 5 percent of Kuwait’s land for housing while the rest is a desert. If they allowed more property to be released for people to build houses on, or if they built more houses in new areas, then the supply will increase and the prices of land will drop, which as a result will decrease the price of rents, as the pressure will be relieved from the rented apartments.

The government has a monopoly on parts of Khaitan, which they bought from the residents and nobody can benefit from these properties. This is in favor of the big businessmen who are trading with South Surra’s lands, and the price of lands is always high and is even increasing. In the United States, I could buy a house for KD 30,000 while in Kuwait I can only buy a livestock farm for KD 50,000,” concluded Salah.

By: Nawara Fattahova
Source : AlBawaba

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Comments (19)

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  1. Yeah! They should listen to us specially for those who have small salary, on my side, we rented the old buildings whuch cost 210 kd. Every month they raised up to 10 to 15kd. Which is almost 340 kd. On that way we decided to move to better and new building which is 360 kd price but new and that was almost 2 years ago. But on that way i have to make it shared rent to others so that its not a burden for us about rent. But in unfortunately the flat that we had by now was going to increase also by 30 kd. And compared to a new buildings is almost 380 to 450 kd as of 2016. Our salary is not enough to pay those rent at all specially to those expat ranging only their salary by 210 kd. And some are 150 kd. Only. And they have to pay the room by 120 kd. Whats gonna be our income of we have also food cost for about 50 to 80 kd. Per month. Come on. Give us some better reason why they have to put us on this kind of situation. Its not reasonable..

  2. This is not fair! may be government need to decrease the no of expats but you guys are rich and aford to feed 100 Million people don't be selfish !!

  3. hoping that the government .taken an action ,,,to make a litlle less,how about a small person who have small salary,50percent of the wage go to the rent,,,how,,,,tks…

  4. Same here , i got increase 70 KD last month.i got shock, house owner said, if you wont to stay pay 70 KD extra, if not go out. no choice i have to stay. where i go with kids..??? this is not fair at all, not only me, all of us. we have no options. i have no idea why government not take action or control Regarding rent issues..

  5. we always face hardship as expats in kuwait. there is thing called HUMAN RIGHTS only for kuwaitees 🙁 they are creating difficulties for us so tht we go back to our country 🙁

  6. John Jolly says:

    2007 I took a flat for 240 in hawally. .now it is 330..can u imagine for Harris 10 kd every month. For just take garbage. From 42 flats how much he earns. .wish to work like a Harris. ..

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  8. Slal Rana says:

    who cares my dear, the pains they give , its high time the Govt. must think to stop it, its not humanitarian .

  9. Haris inform me three months before that rent will be 300 from 230, then after 3 months suddenly he told that rent will be 350. I told it is not possible and after they agreed for 300

  10. Ye this is no good must government take a action fir this matter because everything cost prize is coming high but salary still the same even 2 or 3 years past but not increase.

  11. The greed of the Kuwaiti is pathetic . If it wasn't for the usa they wouldn't have shit . And now they think everything belongs to them. Not all are corrupt . Because I have met good people there. It's the ones that are taking advantage of the people . If you want higher rent per month . Start paying a higher wage to the people that are making your country for what is is today .

  12. Poor kuwait depend on expect….

  13. Kmi Khan says:

    Poor kuwait depend on expact

  14. can you imagine baby dont have milk and water to drink with two years

  15. well that Kuwait luxury and money.

  16. they increase the rent of my apartment from 230 tell 330
    i didn't pay i pay in the justice they put me out from the apartment thanks Kuwait for the humiliation for us and the salary still the same no raise ,im arriving to 7 and 8 beginning of the month the salary finish no food no milk no water at home
    this is over the market not fair
    no one take anything with him god are here

  17. Tom Bird says:

    I will say where I live, our building owner has not raised prices in the 6 years living here. It all depends on the person.

  18. Tom Bird says:

    Loved the comments since navors raised the price he had no choice. So why do prices get raise because a nabor does, and double in the price. Makes no sense whatsoever.

  19. so sad for those expat like us..we have no choice at all.

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