Commercial rents in Kuwait fall 40%

Rent rates in commercial real estate sector in Kuwaiti capital has dropped by 40 per cent over last few months due to many factors, the most prominent of which is the fallout of international financial crisis, reported Kuwaiti daily Al Qabas.

Market witnessed throughout July and the beginning of August a new fall in the price of offices rent per square metre, which had reached last year, before the crisis, its pinnacle of KD9 (Dh115) to KD16 per square metre.

Today, the price of rented square metre has reached a new level in new towers, as some of these towers located in the middle of the capital offer the rent per square metre for KD5.5. This comes while the size of areas offered in the market increased to about 1.4 million square metres due to the completion of some high towers.

Market analysts say the prices range now between KD5.5 and KD8 in the majority of towers offered for rent. Many of them said this range is fair and the prices of past period were too high.

They added tenants are the ones who decide the rent value in the meantime and tower owners respond to the tenants' wishes. Over past five years, the owners were competing with each other in raising the rents.

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