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New Housing Cities in Kuwait to boost housing supply
The Kuwait Economic Consulting House Company established new housing cities in Kuwait to boost housing supply, and aims to cut private housing prices.
The initiative follows an increase in the number of real estate transactions in the housing sector, which touched 379 in December, an increase of 26 percent over November 2009. This marks the highest increase since the second half of last year, said the company board chairman, Mohammed Sultan.
But he also added that no more investment buildings should be built, as currently there are other 70,000 vacant flats, despite a 21 percent hike in investment property spending.
He also urged to stop purchase of properties from companies during the initial three months this year, until the picture gets clearer in view of their annual budgets. Thus, banks will be aware of the actual position of real estate companies, and therefore could determine if they could offer new credit operations.
The private and investment housing constitutes 81.3 percent of domestic real estate market liquidity in Kuwait last year, as revealed by a report by Al Shall Consultancy.
Despite the drop in liquidity in property trading in 2009, the average value per transaction for private housing remained at $760,788, in comparison to $729,369 in 2008, the report said.
This is in contrast to average value for a single deal for investment housing, which fell from $1.9million to $1.79 million during the year.
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