28 March 2005
Kuwait City - A Kuwaiti real estate company plans to revolutionize the housing sector by constructing affordable houses that will be rented and subsequently owned by expatriates. Chairman of Kuwait Invest Real Estate Co Fayez Ahmed Boodai told newsmen at the opening of the company's new head office off the Arabian Gulf Street in Salmiya on Saturday the company wants to take advantage of a law currently being studied by the Cabinet to help expatriates rent and later own real houses."We will be starting the rent-purchase scheme at KD 125 a month for 15 years by which time the expatriate should have finished paying for the flat and it will become his. The expatriate can sell the flat when he wants to leave the country for good or relocate to another area."
Fayez Boodai said the company's initiative was influenced by the huge prospects in the housing sector, rising oil prices and efforts by the government to boost oil production. He added that the positive Kuwaiti market outlook means more expatriates will be settling in the country and that is why there are attempts by the government to allow expatriates own property."I am optimistic the foreign private ownership law will be passed because partial foreign ownership already exists," he said, adding that "reports indicate more expatriates visiting the country have been changing their visas to work permits. It is imperative for expatriates to be able to own houses in the country because the longer they live here the more money they spend on rent which affects their income."
He said the rent-purchase initiative will be welcomed by expatriates because "if an expatriate should live in Kuwait for about 10 years and pay a rent of KD 120 or more he ends up paying about KD 15,000. This could afford him a flat but will instead go down the drain if the flat is not rent-purchased."Kuwait Invest currently has 10 housing complexes under construction in Salmiya, Mahboula, Hawalli and Farwaniya. The complexes will make available about 20,000 flats after completion. Each complex will have central air-condition system, gym, meeting place, round-the-clock security, nursery, basement parking lot and swimming pool. These services will be provided by the company for free.
All flats will have two bedrooms, two bathrooms, kitchen and hall. Fayez Boodai did not indicate the company's capital but said it has been involved in the real estate business for sometime. He said the company, which is family-oriented, has plans to allow public partnership in future to maximize its capital and profits.He added that the company intends to widen its range of activities and be in the top ten real estates in the country in the next few years.
Kuwait City - A Kuwaiti real estate company plans to revolutionize the housing sector by constructing affordable houses that will be rented and subsequently owned by expatriates. Chairman of Kuwait Invest Real Estate Co Fayez Ahmed Boodai told newsmen at the opening of the company's new head office off the Arabian Gulf Street in Salmiya on Saturday the company wants to take advantage of a law currently being studied by the Cabinet to help expatriates rent and later own real houses."We will be starting the rent-purchase scheme at KD 125 a month for 15 years by which time the expatriate should have finished paying for the flat and it will become his. The expatriate can sell the flat when he wants to leave the country for good or relocate to another area."
Fayez Boodai said the company's initiative was influenced by the huge prospects in the housing sector, rising oil prices and efforts by the government to boost oil production. He added that the positive Kuwaiti market outlook means more expatriates will be settling in the country and that is why there are attempts by the government to allow expatriates own property."I am optimistic the foreign private ownership law will be passed because partial foreign ownership already exists," he said, adding that "reports indicate more expatriates visiting the country have been changing their visas to work permits. It is imperative for expatriates to be able to own houses in the country because the longer they live here the more money they spend on rent which affects their income."
He said the rent-purchase initiative will be welcomed by expatriates because "if an expatriate should live in Kuwait for about 10 years and pay a rent of KD 120 or more he ends up paying about KD 15,000. This could afford him a flat but will instead go down the drain if the flat is not rent-purchased."Kuwait Invest currently has 10 housing complexes under construction in Salmiya, Mahboula, Hawalli and Farwaniya. The complexes will make available about 20,000 flats after completion. Each complex will have central air-condition system, gym, meeting place, round-the-clock security, nursery, basement parking lot and swimming pool. These services will be provided by the company for free.
All flats will have two bedrooms, two bathrooms, kitchen and hall. Fayez Boodai did not indicate the company's capital but said it has been involved in the real estate business for sometime. He said the company, which is family-oriented, has plans to allow public partnership in future to maximize its capital and profits.He added that the company intends to widen its range of activities and be in the top ten real estates in the country in the next few years.
By H. Hashim Ahmed
© Arab Times 2005
