Buildings and Real Estate Units – June 2019

In accordance with the latest issue of the Public Authority of Civil Information’s Guide for Buildings and Units, total number of buildings in Kuwait in the end of June 2019 scored about 205.7 thousand buildings in the end of June 2019 (204.6 thousand buildings in the end of 2018), achieving a growth rate by 0.54% during the first six months of 2019, (1.1% on annual basis, which is the same as the registered annual growth rate in the end of 2018 compared with the end of 2017).Buildings are divided into different units which numbered about 729.5 thousand units in the end of June 2019 (723.1 thousand units in the end of 2018), reflecting 0.9% rise (1.8% on annual basis). The compound growth rate for the number of total units during the period percentage of vacant units in June 2019, according to PACI estimates, increased slightly to 25.1% compared to 25% at the end of 2018. The graph below illustrates the percentage of vacant and occupied buildings during the period of 2009-June 2019. 

from the end of 2009 to June 2019 scored 2.2% while the compound growth rate in the number of buildings for the same period came less and scored 1.6%. This confirms a continued trend in reducing units’ areas within each building. This means the change in the demand pattern continued in the same manner, perhaps due to high land price and the high rental level without an increase in income levels. Most buildings in Kuwait are used for residence and form about 68.8% of the total number of buildings. Units assigned for both housing and work come next and finally those which are assigned for work only. Percentage of vacant buildings dropped slightly in the first half of the year, as per PACI figures, and scored 10.7% and numbered approximately 22 thousand buildings out of a total of 205.7 thousand buildings (22.2 thousand vacant buildings, out of a total of 204.6 thousand buildings in the end of 2018, i.e. 10.9%). The following table shows the number of buildings and their usage type as per governorates as of June 30, 2019.

According to PACI statistics, apartments form the majority of units and represents 46.5% of the total, followed by houses by 21.9%, then shops by 18.8%. Apartments and houses sector maintained its regular increase in its share between the end of 2009 until June 2019, contrary to the percentage of house-extensions which dropped.   Compound  growth  rate  (2009-June 2019) for apartments, shops, and houses scored about 2.7%, 2.7% and 1.6%, respectively; it however decreased for house-extensions by about -6%. The percentage of vacant units in June 2019, according to PACI estimates, increased slightly to 25.1% compared to 25% at the end of 2018. The graph below illustrates the percentage of vacant and occupied buildings during the period of 2009-June 2019.