In a year of remarkable economic strength, the real estate brokerage sector in Kuwait has emerged as a leader, experiencing significant growth in 2023. The number of licensed brokers has increased by 13.4% since the beginning of the year. According to the Ministry of Commerce, the total number of brokers rose from 1,351 in December 2022 to 1,532 by October 2023. These numbers indicate a thriving real estate market, reflecting a positive trend towards economic recovery.
October: Impressive Growth
In October alone, there was a noteworthy monthly increase of 41 licensed brokers, a 2.7% rise from the previous month. This strong growth in the real estate sector extends beyond brokers. The number of licensed real estate residents in Kuwait increased significantly from 62 to 151 over a period of ten months. However, this flourishing sector also faces challenges.
Challenges Faced by Real Estate Evaluators
Real estate evaluators, who play a crucial role in assessing property values for transactions and company budgets, are facing issues such as lack of accreditation and insufficient data. Addressing these challenges is a priority for the Kuwaiti authorities to maintain the integrity of the sector.
Steps Towards Improved Regulation
In order to enhance regulation and streamline the booming real estate sector, the Ministry of Commerce has taken decisive action. In November 2020, it issued specific regulatory regulations for brokers. Furthermore, in March 2023, a committee was established under Ministerial Resolution No. 28 of 2023. This committee is responsible for studying and regulating the real estate valuation profession, identifying obstacles, proposing solutions, and coordinating with relevant authorities to obtain necessary data.
As Kuwait’s real estate sector continues to flourish in the midst of these advancements, the country is also making progress in other areas. The Ministry of Electricity Water and Renewable Energy has successfully upgraded the 2 gigawatts (GW) Sabiya Combined Cycle Power Plant in collaboration with Alghanim International and GE Vernova. These upgrades are expected to increase power production, reduce costs, and lower carbon dioxide emissions. Additionally, the Amir of Kuwait has approved a law that allows foreign companies to establish branches in the country without the need for a local agent, which is expected to have a significant impact on foreign businesses.
