KUWAIT: Rents dropped by an average of KD 60 compared to two months ago in Salmiya, according to a report published yesterday. The report says that decisions such as increasing electricity and water fees as well as gasoline prices has caused monthly rents to drop from KD 400 and KD 360 to KD 320 and KD 300 respectively in some places in Salmiya for example. This comes contrary to the norm, as the current back-to-school season and end of summer vacation usually features an increase in rents.

Al-Rai's report quotes Qais Al-Ghanem, Secretary of the Real Estate Association, who previously predicted a drop in rents due to a 30 percent decrease in investment lands' prices in many areas including Hawally, Salmiya, and Farwaniya, in addition to the fact that supply now far exceeds demand.

"Landlords usually wait for September and October to rent their empty apartments," Ghanem said, adding that the story is likely to be different this year is rents are expected to see a notable decrease. "The real estate market has been saturated following the boom in construction investment buildings, and rents will eventually go down following years of rent bubbles," he indicated. - Al-Rai