Real estate investors target expatriate infested regions – ARAB TIMES
Experts downplay the impact of the decline in the number of expats
KUWAIT CITY, December 11th: Despite the decline in the number of expatriates in Kuwait due to the corona pandemic and the resulting decline in demand and an increasing supply of investment properties, these data did not prevent Kuwaiti investors from continuing to invest in properties in various regions of Kuwait, especially in Areas oversaturated with expatriates in regions like Hawally and Salmiya, Al-Anba reports daily. The real estate developers quoting daily confirmed that investment property activity is closely linked to expatriates living in apartments in typical areas, which helps reduce the impact of the decline in the number of expatriates on the real estate sector.
According to official figures, the occupancy rate of investment properties has fallen below 85% and there is no doubt that around 190,000 residents have moved permanently since the beginning of the pandemic, which is one of the main reasons for the spread of “empty apartments for rent” in all regions of Kuwait which has resulted in a percentage decrease in rents depending on the region, and of course the number of exits has left a large gap in investment properties, where occupancy rates have fallen significantly over the past two years.
impact
In this context, real estate expert Abdulaziz Al-Dughaishem played the impact of the decline in the number of expatriates on investment properties down to large segments of expatriates living in model areas, as these apartments have attractive advantages such as generous parking spaces, free electricity and water and the availability of all Enjoy basic services within the city, not to mention the hustle and bustle and proximity to the capital’s commercial center. He added that this did not prevent Kuwaiti investors from continuing the demand for investment properties, particularly in Salmiya, Hawalli, Khaitan and Farwaniya, as these areas are still attractive to a large segment of expatriates who still prefer to stay in them Living areas represent important gatherings for many expatriate communities. He said the investment sector has started to recover from recent losses as demand spikes after the economic cycle with the opening of Kuwait International Airport and a return to normal .
Another real estate expert, Ahmed Al-Duwaihes, says the investment property situation will not stabilize as long as the news of the corona pandemic and mutant viruses pops up from time to time inside and outside Kuwait, especially as this pandemic has caused and continues to be disturbing many stores and some of them even close stores. Al-Duwaihes stressed that no one can deny the existence of noticeable vacancies in many real estate areas, especially given the failure of the arrival of many Asian workers from East Asian countries such as India, the Philippines, Sri Lanka and Bangladesh due to the long and complex health procedures these workers face which have resulted in delays in travel procedures that constitute a significant proportion of foreign workers working in Kuwait and the rest of the Arab Gulf States.