New regulations shrink size of studios, mandate parking spots for all apartments on site

KUWAIT: New regulations for investment properties in Kuwait City aim to modernize the area, but developers may face challenges under the updated rules, according to real estate expert Mohammad Al-Sagheer.

“We can’t yet measure whether this will increase or decrease demand for investment properties because of the new requirements,” Al-Sagheer said in an interview with KTV, highlighting both the limitations and benefits of the amendments.

The changes, approved in July by the Municipal Council after consultations with its technical committee, introduce mixed-use residential investment, which combines residential and commercial functions in the same property. Under the regulations, commercial space cannot exceed 30 per cent of the base 400 per cent building ratio.

A major change affecting developers is parking, said Al-Sagheer. Under the new rules, every apartment must have a designated parking space within the property plot. Previously, developers could provide parking off-site.

The minimum size for studio apartments has been lowered from 60 to 45 square meters, making it easier for developers to offer smaller, more affordable units. However, under the new rules, every apartment must also have a dedicated parking space within the property’s plot. For studio apartments in buildings on corner plots or in areas without extra open space, fitting enough parking spots for the units could be difficult. This means some developers might face design or construction challenges when trying to maximize the number of apartments on a property.

Al-Sagheer highlighted the new rules on balconies as a positive change, noting that they are now excluded from the total building area calculation. “This gives developers more flexibility to enhance the exterior of buildings without affecting apartment floor space,” he said. Basements can also be repurposed for recreational facilities such as swimming pools or children’s play areas, rather than being limited to parking.

At the same time, the new rules address how charitable institutions operate in residential areas. Previously, many such organizations occupied floors in investment properties without formal approval, but authorities recently began enforcing stricter zoning and building requirements, forcing some to relocate after receiving eviction notices.

Under the new rules, charitable organizations can legally build up to two floors without counting stairways or common areas toward the total building ratio. An exception is made for a single property used as a main headquarters, which may exceed the two-floor limit, allowing organizations to consolidate operations while remaining in compliance.

“This opens a new segment of tenants that was not previously available to investment property owners,” Al-Sagheer explained.

The regulations also provide incentives for developers who take out loans from the Kuwait Credit Bank to build apartment buildings. Those developers can add up to 30 per cent more units, encouraging vertical residential construction. The goal is to make apartment living more accessible for citizens while promoting efficient use of urban space.