Kuwait Real Estate Report - H1 2026 Review and H2 2026 Outlook

Executive Summary

Kuwait’s real estate sector proved broadly resilient in H1 2026, even as the U.S.-Iran conflict and seasonal Ramadan slowdown weighed on overall sales, which declined 5.9% y/y. The pullback was concentrated almost entirely in the investment (Istithmari) segment, down 30.1% y/y, while residential sales rose 7.5% y/y and commercial sales surged 34.4% y/y on a handful of high-value transactions. Government-led housing supply through PAHW, alongside new vacant-land and long-term residency reforms, continued to underpin the market’s structural fundamentals.

Based on assessment of key macro factors that would impact the Kuwaiti property market, the real estate market is expected to remain stable in the second half of 2026. The Markaz Real Estate Macro Index score of 3.0 out of 5.0 reflects a cautious-but-stable tone, with government-led investment, housing supply and Kuwait’s low debt burden providing support, even as GDP contraction, fiscal deficit and inflation remain key watchpoints.