Kuwait Real Estate News
Industrial plots much in demand in Kuwait
The real estate market in Kuwait is witnessing huge demand for large industrial plots and buildings which are unsuitable for residing coupled by extraordinarily high rates, revealed a real estate expert.
Yousef Al-Ulayan, an expert in the field, at the Al-Meshkat Real Estate Company, said that there is a sharp decline in the private residence sector, with hardly any demand for lands. Although the prices of houses are stable, there is a recession in the amount of transactions. He pointed out that private residences are excess in supply, and there has been no demand, with this month too, being no exception.
There was hardly any demand on lands in new residential areas such as East Qurain, Al-Manqaf and Al-Khairan. The drop has been estimated at 20 percent from the real estate value. Referring to the land in Abu Futaira, which was priced at KD175,000, Yousef said, it has dropped to KD145,000 in value, due to lack of buyers. Prices of houses located in Uqaila, South Surra and Shbelia, dropped to five percent.
On the investment front, Yousef said, great demand was seen on industrial plots, particularly by companies with handicrafts ventures and investors, as these lands are owned by the state, and fall in the range of 1000 Sq. mts. to 5000 Sq. mts.
Yousef pointed out that investors would prefer to go in for the investment sector, when the private residences sector undergoes a recession in the property market. Such investors usually stick on to companies for financial support, as such buildings need huge capital. For instance, a building with a rent revenue of KD10,000 was offered for a sale of KD1.3million.
As for the commercial sector, according to Yousef, it continues to hold the first position on the price list despite constant lack of demand in the market. This sector is not affected by any factor prevailing in the market and is continuously on the rise.
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