New Apartment Tower: What it Means for the Local Market

Kuwait City's skyline is set to welcome a new addition: a 40-storey apartment tower located on Abdullah Al-Ahmad Street in the heart of the city. The tower, which is expected to be completed by 2028, will offer 250 luxury apartments ranging from one to three bedrooms.

The arrival of this new development comes at a time when Kuwait City's real estate market is experiencing a surge in demand for high-end apartments. With the city's population projected to grow by 10% over the next five years, the need for new housing units is becoming increasingly pressing. The new apartment tower is expected to help alleviate some of this pressure, but it also raises questions about the impact on the local market and the potential for increased competition among developers.

Local Implications

The new apartment tower is located in close proximity to several major landmarks, including the Kuwait Towers and the Marina Mall. Residents will also be within walking distance of the scenic Arabian Gulf Street, which offers stunning views of the city's coastline. The tower's location is also convenient for those working in the city's central business district, with major companies such as the Kuwait Petroleum Corporation and the National Bank of Kuwait located just a short drive away.

According to data from the Kuwait Real Estate Association, the average price of a luxury apartment in Kuwait City has increased by 15% over the past year, with prices now ranging from KD 250,000 to KD 500,000 (approximately USD 820,000 to USD 1,640,000) for a three-bedroom unit. The new apartment tower is expected to be priced competitively, with prices starting at around KD 200,000 (approximately USD 660,000) for a one-bedroom unit. As of June 2026, the Kuwaiti government has announced plans to invest KD 10 billion (approximately USD 33 billion) in infrastructure development over the next five years, which is expected to further boost the real estate market.

As the new apartment tower nears completion, buyers and renters can expect a range of amenities, including a rooftop pool, gym, and concierge service. The tower's developer, Kuwait-based company Ajial Real Estate, has also announced plans to offer a range of financing options to buyers, including a 10% down payment and a 10-year payment plan. With the Kuwaiti government's plans to develop the city's infrastructure, including the construction of a new metro system and the expansion of Kuwait International Airport, the city's real estate market is expected to continue to grow and attract new investors and residents.