Secretary of Kuwait Real Estate Association Qais Al-Ghanem stated that the real estate market in Kuwait has been negatively affected by the departure of many expats, specifying that the association had raised flags about this issue last year.
He clarified that the accumulating pressures recently imposed on expatriates has resulted in a growing number of vacant flats particularly in the investment residential sector.
He also said that the departure of expats is expected to increase in 2018, as they are either searching for better work conditions in other destinations or returning to their home countries. He said that the rents are expected to drop further after the new decisions concerning expatriates are announced.
Al-Ghanem indicated that this crunch has not only negatively affected the real estate market in Kuwait but it has also seriously impacted the whole economy, stating that the real estate sector is one of the elementary pillars of the economy.
Terminating the contracts of expatriates in the public sector, otherwise known as the Kuwaitization policy, and increasing the charges for services offered to expats are to blame for the situation, as well as the recent announcement about a new tax system.