Kuwait Real Estate News
Kuwaiti realty sector facing fake demand-supply threat
The fake supply and demand forces are posing a threat to Kuwaiti real estate market, by seeking swift gains, said a Kuwaiti company leader.
The Chairman of Al-Mutakhsis Real Estate Company, Faraj al-Khidri, said that a few landowners are seeking to capitalize on the marked-up real estate prices. The present day speculations seem suspicious, and relevant mechanisms, although random, seem to be effective, he said. This was mentioned, while pointing out to a few, who had suggested increasing their land prices so as to draw the attention of property officers, as their areas are suffering from low-demand, being located far from residential areas.
The property prices, which usually go up annually or biannually, are now skyrocketing nationwide on a daily basis, permitting speculators to gain more fast and easy money, said Al-Khidri.
He was alarmed about the manner in which property loans are being obtained continuously, to purchase lands at high prices, which, unfortunately, could drop down at a later stage prior to or during construction. Hence, in such cases, the buyers are left with no choice, but, to either sell their land at lower prices, incurring losses, or opt for fresh loans, falling prey to more financial or living trouble.
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