Kuwait Real Estate News
Slump in Kuwait realty sector attributed to overpriced properties
According to a local property firm, Al-Mutakhasses, the recent fall that Kuwait property sector is facing, is due to the fact that buyers are being priced out of market values.
The Chairman of the property firm, Faraj Al-Khudari, said the market has been witnessing stagnation as the prices are above the capability levels of potential buyers, and this situation has led to increased gap in the prices of demand and supply.
The current increase in prices of real estate has been attributed to factors such as inflation, spiraling cost of construction materials, the summer season, and the lack of tourism-based investments.
The company called the government to establish an authority to promote the property sector. The government data reveals that the Kuwaiti real estate sales dropped by 35 percent in April, the first ever decline in months.
The Global Investment House had reported that the decline was perhaps due to the restrictions that the government had imposed on residential property trading, aimed to curb mounting inflation. The real estate sale jumped 15 percent in March.
The total value of all real estate transactions, including residential and commercial, was worth KD206.03mn in April, as against KD315.75mn one year ago. However, the residential sale, which is usually the biggest in the market, dropped down to KD94.31mn in April, as against KD185.47mn during same time last year.
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