Experts minimize impact of falling number of expatriates
KUWAIT CITY, Dec 11: Despite the decrease in the number of expatriates in Kuwait due to the corona pandemic and the resulting drop in demand and an increase in the supply of investment real estate, this data does not have not stopped Kuwaiti investors from continuing to invest in property in various parts of Kuwait, especially areas saturated by expatriates, in areas like Hawally and Salmiya, reports the Al-Anba daily. The daily quoting real estate developers confirmed that the real estate investment activity is closely linked to expatriates who live in apartments in typical neighborhoods, which helps to reduce the impact of the decline in the number of expatriates on the sector. real estate.
According to official data, occupancy rates in investment real estate have fallen to less than 85%, and there is no doubt that around 190,000 residents have left permanently since the start of the pandemic which is the ‘one of the main reasons for the spread of “empty apartments for rent” in all parts of Kuwait, and this has led to a drop in rents which vary in percentage by area, and of course the number of departures has left a huge empty in investment properties, where occupancy rates have fallen considerably over the past two years.
In this regard, real estate expert Abdulaziz Al-Dughaishem downplayed the impact of the drop in the number of expatriates on investment properties, claiming that the main reason for lower occupancy rates in apartment buildings is placement is the tendency for large segment of expatriates to live in apartments in model areas, as these apartments enjoy attractive advantages, including spacious parking lots, free electricity and water, in addition to the availability of all basic services inside, not to mention overcrowding and its proximity to the capital’s shopping center. He added that this does not prevent Kuwaiti investors from continuing the demand for investment real estate, especially in Salmiya, Hawalli, Khaitan and Farwaniya, as these areas are still attractive to a large segment of expatriates who prefer still live in these areas, which represent major gatherings for many expatriate communities. He said the investment sector has started to recover after recent losses as it is witnessing an increase in demand after the business cycle with the opening of Kuwait International Airport and the return to life. normal.
Another real estate expert, Ahmed Al-Duwaihes, says the real estate investment situation will not stabilize until news of the Corona pandemic and mutant viruses continue to appear from time to time inside and outside. outside of Kuwait, especially since this pandemic has caused and continues to disrupt many businesses and some of them are even closing shop. Al-Duwaihes stressed that no one can deny the existence of a notable number of vacant apartments in many real estate areas, especially in light of the failure of the arrival of large numbers of Asian workers in from East Asian countries such as India, the Philippines, Sri Lanka and Bangladesh due to the long and complex health procedures these workers face, which has resulted in delays in the procedures for travel, which constitute a significant proportion of expatriate workers working in Kuwait and the rest of the Arab Gulf countries.