Kuwait Real Estate News
Kuwait property sector to recover from recession by mid-2009
According to a leading economist in Kuwait, the real estate sector in Kuwait will recover from its current slouch by mid-2009.
The Chief Executive of Group Gulf, Adnan al-Haddad, speaking to KUNA, said that the real estate in the country had dropped between 30 and 40 percent during the last two months. But, the market will bounce back strongly with the signs of recovery in oil prices and the stock market. The rebound from the global economic recession could possibly start by second half of 2009, he revealed.
Just as all other sectors, even real estate sector has suffered impact of global financial meltdown, and has been affected by Laws 8 and 9 for the year 2008, which could prevent companies from doing business in the residential sector and prevent banks from offering finance for residential real estate market, he said.
Although Kuwait property sector has suffered from inflation in prices, due to global recession, the time is now ripe for the market to begin recovery process, Al-Haddad said.
He explained that the real estate companies listed on the Kuwait Stock Exchange (KSE) are among those, whose shares are being actively traded, which implies that the sector involves confidence of traders and investors.
Signs of easing in property market have already commenced with courts exempting Islamic Banks from constrictions of Law 8 and 9, enabling them to resume funding for residential real estate market again, he concluded.
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