Kuwait Real Estate News
High property prices driving Kuwaitis to seek greener pastures abroad
Increasing property prices and mounting inflation has compelled middle-class citizens in Kuwait to look for real estate investment opportunities outside the country, reports KUNA.
An employee at the Defense Ministry, Mishaal Al-Haddad, when speaking to the media, commented that investments abroad are more profitable. He revealed that he had purchased an apartment worth KD11,000 in Egypt last year, and the current price of that apartment is worth KD21,000.
The real estate prices in Kuwait is continuing to rise at various percentages, since the year 2003, due to scarcity of land and high demand for all types of properties - residential, commercial or investment.
The Chairman of International Omara’a Real Estate Company, Hussein Deshti, says that citizens intending to invest on a low-budget property are left with no option, but, to invest outside the country. A 400 square meter of land in Kuwait is being sold for KD 300,000, while, with the same amount of money, one could purchase a whole area in a neighboring country.
About 60 percent of the real estate and lands purchased by Kuwaitis abroad belong to Kuwaiti companies. About 80 percent of the citizens are purchasing property abroad for investment purposes alone.
The Director General of the Jordanian Al-Bustan Company, Mohammad Al-Nobami, said Kuwaiti real estate investments in Jordan has touched JD 6 billion during 2007.
The Manager of a real estate exhibition organizing company is reported to have said that during a recent property exhibition 85 percent of participating companies were Kuwait companies and 80 percent of the projects offered were outside Kuwait.
At present most Kuwaitis are seen investing in Egypt, Amman, Dubai and Jordan, although they have retreated from investing in Syria and Lebanon due to political and security problems in both countries.
In other countries, the fluctuation in real estate prices could be only for rational reasons, while in Kuwait, there is a false inflation being witnessed, which is irrelevant to economic factors or circumstances, which is another reason behind the lack of interest among local investors.
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