A growing debate is emerging in Kuwait over the large number of undeveloped investment plots scattered across prime urban areas, despite their strategic locations and strong commercial potential. Along the Arabian Gulf Street, stretching from Sharq to Al-Bida’a, vacant plots remain visible among some of Kuwait’s most valuable and rapidly developing districts.
These undeveloped properties, often referred to in the real estate sector as “black halos,” are vacant investment lands located near major transportation networks, employment hubs, banks and tourist landmarks, including the iconic Kuwait Towers. Real estate experts view these areas as highly attractive for residential and commercial development.
According to recent analytical data, Kuwait has approximately 15,162 investment plots owned by individuals or private entities, covering around 15.3 million square meters. Of this total, nearly 2.4 million square metres across 2,122 plots remain undeveloped, accounting for roughly 14 percent of all investment land in the country.
One of the most notable concentrations of vacant land lies along the coastal strip extending from Sharq to Al-Bida’a, where around 569 undeveloped plots, some overlooking the Arabian Gulf, remain unused. Other vacant investment lands are distributed across areas including Bneid Al-Qar, Dasman, Hessa Al-Mubarak, Sabah Al-Salem, Salmiya, Al-Shaab and Sharq.
The situation has revived calls for imposing fees on undeveloped investment land, similar to Law No. 126 of 2023 aimed at combating residential land monopoly. Advocates argue that applying similar measures to investment plots could help reduce land hoarding, stimulate development and contribute to lowering real estate prices.
Economists and urban planners stress that developing vacant land is not only about construction, but also about transforming idle assets into productive projects that improve city infrastructure, attract investment, create jobs and enhance quality of life. Real estate development is also viewed as a major driver for supporting Kuwait Vision 2035 and diversifying the economy.
Expanding development projects on vacant plots is expected to create employment opportunities and stimulate several related sectors including construction materials, furniture, transportation and interior design. Improved urban infrastructure and integrated services would also help make Kuwait City more attractive to residents, investors and businesses.
Despite the financial potential of these lands, many owners continue to leave them undeveloped for years. Questions have been raised about why investors freeze assets worth millions of dinars without generating returns, especially given that average returns on investment properties in Kuwait are estimated at around 10 percent annually, reports Al-Rai daily.
Chairman of the Real Estate Union, Engineer Ibrahim Al-Awadhi, said several obstacles prevent landowners from developing their properties. These include inheritance disputes, lack of investment expertise and insufficient liquidity among some owners. Others, he noted, possess significant wealth and prefer to rely on the continued rise in land values rather than actively develop their assets.
Al-Awadhi called for government incentives to encourage development, including measures to speed up licensing and construction procedures, prevent monopolistic practices and expand financing solutions such as real estate funds, partnerships and property contributions. He stressed that developing vacant investment and commercial lands would strengthen the national economy while improving Kuwait’s urban and architectural landscape.
