Kuwait Real Estate News
Kuwait sees steep increase in purchase of existing homes
In its latest economic brief on monthly statistics issued by Ministry of Justice (MoJ), excluding agent sales, the National Bank of Kuwait reports that property sales picked up in April.
A total of KD96.7mn worth transactions were registered during the month, an increase by 8 percent from March. Year-on-year sales dropped by 42 percent and by 53 percent in value. According to NBK, the rise in value of sales was led by commercial sector, which surged by 51 percent. Apartment sales surged 13 percent, while residential sales dropped 8 percent.
The data by MoJ reveal that more than half of all residential sector transactions were accounted for by completed homes, rather than new plots. The areas that are most active markets for vacant plots are Ishbilya and Abu Futaira, both constituting a total of 58 percent of total traded vacant residential plots.
According to NBK (National Bank of Kuwait) report, property sales fell considerably this year, with the average sales generated during the first four months of the year being 56 percent lower than during the same period last year.
Majority of decline in sales during the period occurred in residential property. The apartments sector was also weak, with average monthly sales value dropping by 62 percent. The average transactions for commercial property, however, increased by 19.7 percent.
NBK also reported that the number of Savings and Credit Bank loans approved increased by 2 percent in April over March, but, the value of loans approved by bank was down by 10.7 percent. But, compared to March, the number of approved loans for purchase of existing homes increased sharply in both number and value. This indicates an increase in purchase of existing homes during the month.
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