Buildings and Real Estate Units – December 2019

In accordance with the latest issue of the Public Authority of Civil Information’s PACI Guide for Buildings and Units, total number of buildings in Kuwait until the end of December 2019 was at 207.2 thousand buildings, compared to 204.6 thousand buildings in the end of 2018, achieving a growth rate by 1.2%, which is higher than the registered annual growth rate in the end of 2018 that was at 1.1%. The number of buildings growth in 2019 is the third lowest growth rate in the previous eight years, the lowest growth rate was at 0.7% in 2011 then at 1.1% in 2018 as mentioned previously.

Buildings are divided into different units where they achieved 736.8 thousand units compared to 723.1 thousand units in the end of 2018, reflecting a 1.9% growth as opposed to a similar percentage growth in 2018. The compound growth rate for the number of total units during the period 2010 to 2019 scored 2.1%, while the compound growth rate in the number of buildings for the same period came less and scored 1.5%. This confirms a continued trend in reducing units’ areas within each building, indicating a change in the demand pattern continued in the same manner. Most buildings in Kuwait are used for residence and form about 68.7% 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, as per PACI figures, reaching 10.5% and approximately at 21.8 thousand buildings out of a total of 207.2 thousand buildings, compared to 22.2 thousand vacant buildings from 204.6 buildings at the end of 2018, i.e. 10.9%. The following table shows the number of buildings and their usage type as per governorates as in the end of 2019:

According to PACI statistics, apartments form the majority of units and comprise 46.4% of the total, followed by houses by 21.9% then shops by 19%. Apartments, houses and shops sector maintained its regular increase in its share since 2010 until the end of 2019, contrary to the percentage of annexes which dropped. Compound growth rate (2010-2019) for shops, apartments and houses scored 2.6%, 2.5% and 1.6% respectively, however it dropped for annexes by 6.2%. The percentage of vacant units, according to PACI estimates, rose in 2019, reaching 25.3% versus 25% in the end of 2018. The following graph shows the percentage of vacant and occupied units during the years 2010-2019.