Kuwait Real Estate News
Kuwait residential sector still sluggish
Residential sector in Kuwait witnessed a slump during the first two months this year, inline with the decline in property sales during the period, according to latest report.
The total number of property sales registered in Kuwait (including residential, commercial and retail), dropped by one percent between January and February, with only a total of 383 homes being sold so far, reported the National Bank of Kuwait (NBK).
Following indications of a strong recovery late last year, the activity in property sector, slipped back during the past two months, with sales now averaging in the 2009 levels, the report said.
The NBK report pointed out the decline in transactions by 15percent, while in year-on-year terms, sales turned negative for the first time since September 2009. However, the report said there is scope for improvement over the next few months, due to base effect from a sharp drop in sales a year ago. The report revealed a steep decline in residential sale for the second consecutive month, as the residential sales fell by 11 percent from January.
But, a point to be noted is that the average value of transactions have recovered from its lows in mid-2009, wherein a rise from KD180,000 (mid-2009) to KD208,000(Feb 2010) is seen. However, this is not necessarily an indication of growing property prices, but, indicates greater number of transactions of higher value properties that are currently taking place.
Investment sales recorded a 20percent month-on-month gain in February.
As for commercial properties, there were four sales of commercial properties in February, an increase, compared to none in January. Back in 2009, they averaged to six sales a month.
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