KUWAIT CITY – Amidst the transformation seen in the local real estate market, January 2026 performance reflected clear changes in investor behavior and investment trends, with notable fluctuations across sectors in terms of deal numbers and deal values.
Although trading volumes have increased, total values have remained stable, indicating a repositioning within market dynamics.
In the local real estate market, 442 transactions were recorded in January 2026 with a total value of KD 251.8 million, compared to 405 transactions valued at KD 252.4 million in January 2025.
This increase in the number of transactions and stability in value reflects the changing nature of transactions and the trend for investors to invest smaller and more diversified amounts. Private real estate accounted for the largest share of total transactions, recording 307 transactions (worth KD 133.9 million) compared to 282 transactions (worth KD 105.9 million) in January 2025. The number of transactions increased by 8.8%, and the value increased by 26.4%.
This performance confirms continued growth in demand for private housing, supported by genuine housing needs, improved transaction activity and enforcement of anti-land speculation laws.
The number of investment transactions reached 114, worth KD 74.6 million, compared to 107 in the same period last year, worth KD 119.2 million.
Despite a 6.5% increase in the number of transactions, prices recorded a significant 37.4% decline, reflecting a shift by investors towards lower- and mid-priced properties amid a reassessment of returns and changes in risk profiles.
The commercial sector saw a significant jump with eight transactions totaling KD 27.3 million in January 2026 compared to three transactions totaling KD 5.2 million in January 2025, with a 166.6% increase in the number of transactions and a 425% increase in value, demonstrating selective activity and high quality opportunities in this sector.
In the industrial real estate sector, a disparity emerged between the number of transactions and transaction value. Twelve transactions were recorded for a total of KD 11.5 million, compared to 11 transactions totaling KD 14.6 million last year. This is a slight increase in the number of transactions (9%) but a decrease in value (21.2%), suggesting a cautious balance related to industrial and service sector activity. One transaction worth KD 4.5 million was recorded in the coastal area, but there were no transactions in January 2025.
This means a limited but prominent presence of such types of real estate, often associated with selective and high-value transactions. In contrast, two warehouse transactions worth KD 7.3 million occurred in January 2025, while no similar transactions were recorded in January 2026, indicating a decline in activity for this type of real estate during the period.
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