A recent report by Al-Shall Center reveals a positive trend in Kuwait’s real estate sector, with the vacancy rate for buildings decreasing to 8.4% by the end of June 2024. This marks a decline from 8.8% in June 2023, reflecting a slight improvement in occupancy and a growing demand for residential and commercial spaces.

As of June 2024, the total number of buildings in Kuwait reached approximately 219,600, up from 216,300 the previous year. This represents a 1.5% growth rate, slightly lower than the 1.6% growth recorded in the previous year. Additionally, the number of building units increased to about 786,800, compared to 778,200 units a year earlier, marking a 1.2% increase. The compound annual growth rates from June 2015 to June 2024 show a 1.9% growth for units and a 1.2% growth for buildings, indicating a trend toward smaller unit sizes within buildings and shifting demand patterns.

Residential buildings dominate Kuwait’s real estate landscape, accounting for approximately 66.6% of the total. These are followed by mixed-use and commercial buildings. The report indicates a decrease in the percentage of vacant buildings, which now stands at 8.4%, translating to about 18,400 vacant buildings out of 219,600. This reduction from the previous year’s 8.8% suggests a modest improvement in occupancy rates.

Among the building units, apartments make up the largest share at 45.3%, followed by houses at 21.8% and shops at 20.1%. The growth rates for these types of units from June 2015 to June 2024 were 3.4% for shops, 1.7% for apartments, and 1.4% for houses. Conversely, the growth rate for annexes has declined by about -0.9%. The percentage of vacant units also decreased to approximately 20.1% in June 2024, down from 21.5% a year earlier.

The latest report highlights a positive shift in Kuwait’s real estate sector, with a decrease in vacancy rates and continued growth in the number of buildings and units. While the overall growth rates are modest, the decrease in vacancies reflects a gradual improvement in market conditions. The trend toward smaller unit sizes and the increase in building numbers suggest evolving demand patterns within Kuwait's real estate market.