Kuwait had its biggest year on record and may be on the edge of its most consequential reform. Real estate sales hit an all-time high of about KD 4.4 billion in 2025 per NBK, with Q4 alone at KD 1.3 billion and residential up 48% quarter on quarter. The KSE real estate index rose roughly 50%.
The reform that changes the math
The long-awaited mortgage law is in its final stages. It could open a market worth around USD 65 billion and expand lender credit portfolios by roughly 40%, with terms up to 30 years. Historically only the Kuwait Credit Bank financed citizen home purchases, so a functioning mortgage market would be a structural shift rather than a cyclical one.
Opening to institutions, curbing speculation
Mid-2025 reforms allow non-Kuwaiti entities, listed companies, funds, and portfolios, to own property, excluding private housing. In the other direction, the Anti-Land Monopoly Law expected in early 2026 imposes annual fees on vacant residential plots to curb speculation. A housing backlog exceeding 100,000 applications is the pressure behind both moves.
New cities, long horizon
Major new cities, Al-Khairan, Nawaf Al-Ahmad, South Saad Al-Abdullah, and South Sabah Al-Ahmad, are progressing under Vision 2035, and a 2023 development law enables 30-year private-sector PPP housing contracts. The market is projected to grow at a 7.2% CAGR from 2026 to 2032, with the mortgage law as the swing factor.