Kuwait Real Estate News
Real Estate activities in Kuwait continue to drop
The real estate sales activity in Kuwait continues to decline, falling to its lowest in February, during the past eleven months, reported an economic briefing by the National Bank of Kuwait (NBK) on Monday.
The value of real estate sales is declining despite the growth in number of residential units, reported the monthly statistics of registered real estate contracts by NBK.
A total 839 sales transactions were registered during February, totaling to KD156.1million. The sales volumes increased by 35 percent, but, the sales values decreased by 20 percent as against the previous month. However, the sales value figures and volume were 16 percent and 82 percent higher respectively than the previous year.
The residential sector was the main cause behind the drop in sales values during February. The sales dropped by 24 percent, due to which, the average price of residential units too, dropped by 47 percent, although a 43 percent increase in number of properties sold was witnessed.
The fall in residential property prices could be due to the greater number of low-value property transactions that have taken place during the month, or could be due to the implementation of the amendments on Law No.8, 2008, which forbids commercial companies from trading in residential properties.
In the meanwhile, the number and sales value of apartments and commercial property witnessed a drop of 7% and 14% respectively. According to NBK, the value of loans approved by the Savings and Credit Bank (SCB) declined by 22 percent during February in both value and number terms.
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