kuwait city

Mangaf Fire Causes Increase in Kuwait’s Warehouse and Housing Costs

The Mangaf fire has forced the Kuwaiti government and private sector to reorganize the real estate market, especially for bachelor accommodations and warehouses. This will increase costs for these facilities, leading to higher tender prices due to better quality and higher operating expenses.

Warehouse and bachelor accommodation rents have surged, with further increases expected unless new, secure, and safe spaces are created. The government is cracking down on random warehouses, penalizing violators.

Real estate experts warn that property owners who rented apartments as warehouses without proper oversight will face significant challenges, especially where spaces were altered against municipal licenses.

Since the fire, warehouse rental prices have jumped 40%, potentially doubling if no storage alternatives are provided for investors using illegal spaces. This may lead to higher consumer prices for goods.

Store rental prices vary by activity, with food store rents in Shuwaikh, Al-Rai, and Al-Ardiya previously ranging from 4 to 7 dinars per square meter. Car warehouse prices ranged from 1.25 to 1.5 dinars per square meter.

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