Kuwait Real Estate News
Property sales rise in Kuwait for first time this year
Property sales in Kuwait have grown 8 percent in August 2009, the first increase this year, official figures showed.
Property sales in August have increased to KD96.61mn from KD88.95mn in August 2008, the data indicates.
Residential property transactions, which represent the biggest portion of total real estate transactions, were up by 31.2 percent touching KD55.4mn, compared to that in August 2008.
Property sales, particularly housing unit sales, have fallen, as the government placed restrictions in 2008, barring private firms from trading in existing houses to prevent unjustified increase in prices.
The National Bank of Kuwait in its research note noticed a gradual recovery in real estate activity. The combination of a steadily improving economic backdrop, easing finance conditions, and the impact of recent legal ruling, permits Islamic financial institutions to trade residential property and this should continue to push real estate sales off their lows.
“We hope real estate market activities to strengthen further in 2010,” the report said.
Leading Islamic lender, Kuwait Finance House (KFH) in August had won a verdict against the Ministry of Justice, making way for it to finance private real estate investments in the country.
Investment property sales increased 5.9 percent to KD35.9m, compared to commercial property sales, which plunged 58.4 percent touching KD5.3mn in August, compared to same period last year.
Commercial property in Kuwait refers to apartment buildings meant for leasing, particularly to foreigners.
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