Guide to buying a property in Kuwait
For the citizens of Kuwait, buying a property should not be a problem. The market is large and there are various offers for different budgets. However, for foreigners, the situation is a bit different. For a long time, it was impossible as a foreigner to own a property in Kuwait. The things have changed for better a couple of years ago, but it’s still subject to strict regulations. Generally, you can own a residential property if you meet certain conditions. But even if you do, there is no guarantee you will get the approval. On the other side, Kuwait is an economically strong and progressive country and property ownership laws might change in the near future.
Buying property in Kuwait
Over a couple of decades, Kuwait was one of the popular places among foreigners. To this day, this trend is not losing its strength. The strong economic prosperity, combined with perspective career opportunities, are still attracting people from all over the world. Additionally, the absence of taxes and a high range of salaries are making it the perfect place for work. A couple of facts you can notice at first glance:
- Two out of three residents in Kuwait are foreigners.
- The strong oil industry is making the majority of the country’s GDP.
- Rentals are the primary option due to restrictions on foreign ownership.
Still, moving to Kuwait shouldn’t be too complex if you take time to prepare. Generally, hiring a moving company like Easy Move KW will make the entire process easier. Finding proper accommodation is also easy but you need to research a bit. Also, don’t forget to get to know the culture if you are a foreigner, to avoid unnecessary cultural shock.
Kuwait is a really popular place for work.
Important for foreigners
In order to buy a property as a foreigner, you must meet a few conditions:
- You have to be a permanent resident.
- Income should be high enough to support the purchase and cost of living.
- There should be no criminal record in Kuwait, especially those connected with honor.
- You can own only one property in Kuwait.
- The size of the property should not exceed 1,000 square feet.
- The property should be used for residential purposes only.
For newcomers, it’s a recommendation to use the real estate agent with a proven record within the foreigner community. It will save you from scams and prevent any misunderstanding that can occur. Especially in complex situations that can happen due to lack of information and knowledge of the language.
When is the perfect time to trade?
Like many other things in Kuwait, the prices are directly tied to the oil industry. For people who wish to buy a property, it’s best to follow the fluctuations and changes in the market before making a move. Selling at a peak moment can be good if you want to earn money, but buying… not at all.
A couple of precautions when buying a property in Kuwait
Even though Kuwait is a highly developed country, it’s still possible to run into a scam. Especially since there are no taxes on salaries and constant influx of newcomers. These are some of the main reasons why con men are trying to make a profit out of uninformed people. Since regulations can be quite complex, even for citizens, you should always hire a reputable lawyer, and trustworthy estate agent. The best way is to find locally-oriented representatives tied to particular groups. So, be careful when buying your first household.
Choosing where to live
Most people looking for work try to find a property in large cities like Kuwait City. The close proximity to work, the distance to schools, services like storage company you can trust, are all reasons to choose one place over another. The most appealable areas are usually already populated but they still offer a lot. Especially for families with kids. But, the prices are following that trend as well.
Costs of utilities, the quality of air conditioning or ventilation system are something easy to forget when looking for a place in a hurry. But, as a long term investment, they should not be overlooked. So, check the household in person at different times of the day. Usually, this is the best way to evaluate the neighborhood and living conditions, in general.
Pay attention to the parking place if you want to save your car from damage.
A couple of additional things to pay attention to
Bear this in mind:
- Avoid ground floors because of the increased chance of burglary.
- Stay away from attractions like swimming pools if you prefer more peaceful and quiet places for you and your kids.
- Foreigners should be aware that a nearby mosque is calling prayers five times a day.
- Check for the number and quality of parking space because high temperatures can damage your vehicles.
The prices of property in Kuwait
Probably one of the most popular destinations in Kuwait is Kuwait City. The central industrial crossroad of international trade where many companies are shipping different goods to Kuwait, and the other way around. Not exactly the western-oriented lifestyle for foreigners, but never the less, a great place for living.
Goods from all over the world are finding their way to Kuwait.
The country’s capital city can introduce you to different real estate prices depending on the current situation on the market. And, just like any other city in the world, they can have a wide range. The most notable differences in prices are in the central part of Kuwait city. From $300 per square feet all the way to over $3,000. And you definitely can’t expect that you will find those cheaper options to purchase. On the other side, outside of the center, prices are more affordable for the average wallet. Usually, somewhere about $150 – $650 per square feet. And, like with all other countries, the closer you are to the city the costs of living are higher.
Buying property in Kuwait has its own challenges but they are easy to overcome once you are familiar with laws. In the end, if you find your perfect place, don’t hesitate, just do your research and hire the necessary help. Once you make yourself a proud owner, you can enjoy all the benefits of living and work in a place like Kuwait. And they are many.