Kuwait Finance House (KFH) Executive Manager Real Estate Valuation, Eng. Hamad Al-Hasawy, stressed the resilience and capability of the real estate sector to enhance value momentum for investors, while offering alternative investment opportunities through the achievement of quarterly growth rates across various the various real estate segments, most notably housing, investment and commercial properties.

He advised investors to diversify their real estate portfolios to achieve optimal and sustainable returns, by capitalizing on the steady growth in demand across different real estate sectors throughout the year.

Al-Hasawy indicated that during Q4 of last year investment real estate recorded exceptional activity, with the commercial real estate maintaining high performance levels. In addition, real estate trading increased in the private housing real estate, craftsmanship and warehouses properties. The total real estate trading values reached approximately KD 4.6 billion during 2025, representing a 22.8% growth from the high levels recorded in 2024.

Al-Hasawy explained that that the total real estate trading value on a monthly basis during Q4 2025 rose to over KD 1.3 billion, marking a 5.6% quarterly increase. This growth was driven mainly by a rise in private housing transactions, which reached about KD 587 million, up by 48.3% compared to the previous quarter.  This was supported by higher demand in Q4, as the number of transactions climbed to 1,247 deals, an increase of 20.5% from the previous quarter. In Q4 2025, the investment real estate reclaimed its lead, recording KD 436 million in trades, up 7.3% via 421 transactions. This segment surpassed the commercial real estate, which dominated the previous quarter. During the same period, commercial real estate experienced a sharp contraction, with trading values plummeting 38.4% to KD 272 million and transaction volume tapering to 70 deals, down 7.9% from Q3 levels.

Al-Hasawy further indicated that these market developments represent a significant opportunity for investors, highlighting the importance of portfolio diversification and avoiding investing in a single segment. “This allows investors to earn higher returns and benefit from the shifting in trading values across different segments of the real estate market.”

He pointed out that diversification reduces risk, maximizes exposure to market developments, and ensures good cash flow for investors despite varying market conditions. This is because investors benefit from the growth of any real estate segment while avoiding the impact of declining demand or activity in the rest of the segments.

Al-Hasawy added: “Private housing real estate segment regained its top rank in terms of trading value during Q4 of 2025, accounting for 43.7% of the total real estate transactions, after ranking third in Q3 2025 with a share of 31.1%. Investment real estate maintained second place with 32.4% of total transactions in Q4, compared to 31.9% in Q3 2025. Commercial real estate ranked third, accounting for 20.2% of total transactions, after having recorded exceptional activity in Q3 2025 when it represented around 34.6% of the total trading value. Meanwhile, coastline properties accounted for 2.4% of total transactions, compared to 0.2% in Q3 of 2025.”

According to the monthly data and indices of the Land Registration and Documentation Department in the Ministry of Justice, the total real estate trading value exceeded KD 1.3 billion during Q4 2025, higher by 5.6% from Q3 2025. It is also remarkably higher by 19.9% on an annual basis, driven by the rising demand across various real estate segments, which is reflected in the number of deals during the year. Demand for commercial real estate segment nearly doubled compared to 2024. Similarly, investment real estate segment saw a significant surge in demand, in addition to a notable increase in the other real estate segments including private housing and the coastline, craftsmanship properties and warehouses.

Furthermore, Al-Hasawy emphasized that real estate valuation is a cornerstone of the industry, operating at multiple levels. It facilitates seamless financing and organizes market transactions through transparency, professional standards, and fair appraisals that reflect current market realities. He highlighted the exceptional caliber and professionalism of KFH’s valuation team, which continues to bolster the deep trust placed in them by a diverse customer base. Moreover, KFH’s robust organizational structure ensures market-leading performance. Combined with decades of experience, impartiality, and a reputation for reliability, KFH has become the preferred choice for valuation services across all sectors. As an accredited entity, KFH leverages an extensive database and a specialized technical team (comprising engineering, legal, and accounting experts) to deliver valuations rooted in rigorous market studies and real-time monitoring.