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Kuwait property sales surges 44 percent month-on-month

Property sales surged 44 percent in Kuwait month-on-month this September to touch KD320mn, owing to strong response from residential and investment sector, said the latest report from National Bank of Kuwait (NBK).

September is generally a solid month with sales bouncing back, after the quiet summer season. However, this year, the sales may also have been supported due to timing of Ramadan, which fell in July/August said the NBK report.

Both residential and investment sectors grew considerably, with sales in volatile commercial sector have witnessed steep decline. The sales in residential sector grew to KD190.2mn in September with 81 percent month-on-month increase, owing to increased transactions and their average size.

Ahmadi governorate recorded 54 percent of transaction, followed by Mubarak Alkabeer, and Hawalii. About 68 percent of transactions were for plots versus 31 percent for existing homes, the report said.

The sales in investment sector showed an increase of 120 percent month-on-month. The average size of transaction was highest since February 2012 at KD911,000. The total number of transactions in September grew by solid 86 percent month-on-month, the report said.

According to NBK, the commercial sector sales dipped to KD10mn in September from KD64mn in August. Although this is in line with seasonal trend, sales in the sector are often volatile, and have been strongest in August for many years. Overall, the commercial sector has been extremely good in recording year-on-year growth in 7 out of 9 months so far in the year, said the NBK report.

NBK further revealed that value of disbursed loans grew by 31 percent month-on-month and was the highest on record this year. Also, 90 percent of approved loans went towards new construction, while loans for purchase of current structures were 9 percent of the total.

Despite increase in maximum applicable loan of KD70,000 to KD100,000, it still awaits approval from parliament.

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