The Public Institution for Housing Care signed today, Monday, the consulting services contract for the development of three different residential sites, in accordance with the provisions of Law No. 118 of 2023 concerning the establishment of companies to construct cities or residential areas and their economic development.

On the sidelines of the contract signing, Minister of State for Municipal Affairs and Minister of State for Housing Affairs, Abdullatif Al-Mishari, stated that "this step marks the beginning of serious efforts to activate the real estate developer model and the real launch of the transformation in the philosophy of housing care in the country. It involves engaging the private sector in driving housing projects forward and providing sustainable solutions and diverse alternatives for citizens that align with the varying needs of Kuwaiti families, as well as high-efficiency and high-quality housing models."

He added that "activating the law in parallel with the current housing care system represents the first step in a smooth transition from the traditional model, which relies on the state directly providing housing units, to a partnership model with the private sector. This, in turn, activates one of the most important developmental policies of the state, which is the shift from operation to oversight and regulation."

Al-Mishari emphasized that the projects covered by the signed consulting contract are model projects to test the efficiency of the general system of the real estate developer law. He noted that the Public Institution for Housing Care will closely monitor all stages of project implementation to ensure the optimal application of the law and to address any potential implementation challenges effectively and promptly.

Regarding the locations of the three residential areas, Al-Mishari said, "We ensured that these areas are in strategic and model locations close to urbanized and developed regions so that citizens are inclined to live there. Currently, they are under evaluation."

He added that "the sizes of the government plots vary, as the Public Institution for Housing Care is keen on diversity and ensuring that the concept of the Kuwaiti family is not confined to a single box." He pointed out that there is diversity in the market with different prices to provide citizens with choices.

Al-Mishari explained that in the future, there will be coverage for all segments, not just Kuwaiti families. There are laws for women, single women, and single men, stating that "housing is an integrated system, and there are different categories deserving of housing, including those who will receive facilitated housing, empowerment housing, and support housing, depending on their eligibility for housing care."

Regarding the expected impact of the launch of the real estate developer system on residential property prices, Al-Mishari clarified that the current projects and future housing projects planned under the developer system aim to create a competitive environment among investors and leverage the private sector's capabilities to generate abundance and diversity in the housing supply. This will help restore balance between supply and demand for residential properties and curb the rising inflation in their prices.

He pointed out that the real estate developer system is one of the main pillars and the cornerstone of a comprehensive program for sustainable housing care, carefully prepared as part of the government's efforts to promote sustainable development.

He highlighted that a real achievement has been made in launching the first real estate developer projects in Kuwait through meetings with various government entities and the private sector. He explained that the issue of real estate financing is a joint effort between the Public Institution for Housing Care, the Ministry of Finance, the Kuwait Investment Authority, and the Central Bank of Kuwait.

He mentioned that several sessions have been held with major real estate development companies and the Real Estate Union, and recommendations and opinions on many matters have been implemented. Other policies will also see the light soon.

Regarding the areas of (Nuwaib Al-Ahmad), (Al-Khiran), and (Al-Sabahiya), Al-Mishari stated that the Board of Directors of the Public Institution for Housing Care has approved the launch of the initial design and infrastructure plans for these areas. He explained that these areas will include 150,000 housing units.

Al-Mishari invited investors and local and regional real estate development companies to participate in the projects to be launched by the Institution, given the promising investment opportunities they offer. He emphasized the private sector's key role in achieving the desired outcomes of the real estate development system.

Concerning labor cities, Al-Mishari said they are "part of international agreements, and there are consultations with other parties regarding these projects and their inclusion in the private sector, as well as studying their feasibility. They are among the priorities of the Institution and the government." He explained that several labor cities fall under the Public Institution for Housing Care, the Ministry of Finance, and other entities.

It is worth noting that the consulting services covered by the contract focus on developing three new residential areas through the real estate developer system, with an estimated total capacity of over 5,000 housing units.