Representatives Adnan Abdul-Samad, Dr. Obaid Al-Wasmi, Dr. Abdulaziz Al-Saqabi, Khalil Al-Saleh, Musaed Al-Ardhi, Dr. Khaled Al-Enezi, Ahmed Al-Hamad, Osama Al-Manawer and Fayez Al-Jumhur submitted a proposal for a law to regulate ownership in the private and model residential sector.
The law stipulates the imposition of an annual fee of fifty dinars per square meter on everyone who owns more than two properties or more than two thousand square meters, with limited exceptions such as the property owned by inheritance and with a maximum of one property only, and everyone who owns a property with an area of more than two thousand square metres, with the imposition of fees on his other properties.
The law also stipulated the imposition of a fee of 10% of the value of the sale on everyone who sells his property within less than three years from the date of ownership, with some exceptions such as first ownership and property owned by inheritance, in order to combat speculation and manipulation of property prices.
The deputies said in their explanatory memorandum that this law is directed to monopolists and real estate dealers and will prevent trading in residential real estate, after the phenomenon of investment in it has become widespread, which is contrary to the purpose for which these areas were established.
The deputies added that the current situation of unfettered ownership in the residential sector has many negative effects, such as the lack of justice and equality between people, and the unprecedented rise in real estate prices as a result of the lack of supply and increased demand, which burdens the Kuwaiti family who wants to buy a house, and also the owners of capital make profit. A lot of converting residential real estate into apartments and renting them, taking advantage of the state’s subsidy for electricity and water, in addition to causing severe congestion in the streets of these areas and putting pressure on their infrastructure, which was not designed to withstand the large increase in the number of its residents. They traded in the market, where the cost of the rent allowance on the state amounted to about two billion dinars during the past ten years only, and all of it goes to the property owners.
This law also represents a step in the direction of solving the housing crisis before the increase in supply, as there is no guarantee of recurring speculation and investment in new areas without restrictions.