Kuwait City, Feb 28: The coronavirus pandemic has hit all economic sectors in the country hard, with the real estate sector being the hardest hit.
Falling demand, growing vacancies, and falling rents for apartments, commercial space, and investment blocks have led to the income of property owners and investors falling.
Housing rents are reported to have dropped significantly in some areas, rents have dropped 30 to 50 percent in certain areas, and have been in free fall for several weeks.
Several reasons have been cited for this decline, including the decision by the government and many private organizations to discontinue the services of expatriates.
Some foreigners, faced with the worsening economic situation, also decided to send their families home, give up their apartments and move to solitary accommodation.
In addition, many expatriates decided to leave the country in the wake of the coronavirus situation, which also had a negative impact on the real estate sector.
Property owners assume that the situation will continue to deteriorate in the coming months. Investors decide to stop buying new land or building new buildings, which results in less money circulating in the industry.
They added that the real estate sector would continue to suffer if the government resorted to implementing new expatriate policies on residency visas to control the number of expatriate workers and change labor market conditions and demographics.