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The National Bank of Kuwait placed 2025 real estate sales at a record KD4.4 billion, equivalent to $14.3 billion, marking a 27 percent rise from the prior year and the strongest annual performance in more than two decades. Sales accelerated in the fourth quarter to KD1.3 billion, topping the previous quarterly record from the second quarter of 2014. Residential transactions drove the quarterly figure with KD587 million in value, reflecting gains of 48 percent from the third quarter and 29 percent from the year-earlier period, according to the bank’s assessment released in January 2026.
A substantial portion of the residential increase stemmed from plot sales in the Sabah Al-Ahmad coastal area worth KD129 million as owners moved ahead of the residential land monopoly law that became effective in January this year. The bank noted that stripping out those deals would have produced more moderate residential growth of 15.8 percent on a quarterly basis and an overall decline in total transactions. Commercial sales reached KD303 million in the fourth quarter on the back of major deals such as land in Al-Farwaniya and Kuwait City valued at KD63 million together with two commercial buildings sold for a combined KD60 million. Investment sales rose 7.3 percent from the third quarter despite lower transaction counts.
Full-year commercial activity set an all-time high at KD953 million while investment property sales advanced 39 percent to KD1.67 billion, NBK data shows. Residential sales recovered with a 14.3 percent annual increase to KD1.75 billion. The bank observed that the average transaction size fell 5.2 percent, which it said could point to greater interest in smaller or lower-value properties in outer areas. Amendments to investment housing regulations and steps to reduce speculation in the residential segment appear to have channeled more activity into commercial and investment assets as investors sought income-generating opportunities amid easing financial conditions, the report added.
Regulatory changes implemented in June 2025 that permitted non-Kuwaiti participation through listed companies, licensed funds and investment portfolios excluding residential land helped boost sector confidence. Those measures coincided with a 49.9 percent expansion in the Boursa Kuwait Real Estate Index during 2025, according to the National Bank of Kuwait. A report from 6Wresearch projected the Kuwait real estate market to register a compound annual growth rate of 7.2 percent from 2026 through 2032 supported by infrastructure development and rising demand. Industry analysis from The Report Cubes valued the market at $11 billion in 2025 with a forecast to reach $17.21 billion by 2034 at a 5.1 percent annual pace.
The National Bank of Kuwait described the prospects for real estate activity in 2026 as positive with continued momentum from potential further monetary easing and key legislative initiatives. These include the anticipated approval of the real estate financing law and full activation of the residential land monopoly law aimed at reducing hoarding of idle plots. Provisions allowing foreign shareholders to own property other than private residences are also expected to draw additional investment into the sector. Separate assessments from Marmore MENA suggested the market would stay stable in the first half of 2026 with potential increases in land prices and rental rates amid stable non-oil growth.
