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Apartment sales increase in Kuwait

The National Bank of Kuwait reports indicates that transactions are now at their worst level for five months. Property business in Kuwait recorded just 314 deals worth a total $278m in May.

The main cause was plummeting commercial sector sales. Figures from the Ministry of Justice Property Registration Office show a 66% drop in commercial property sales in May.

Sales in the apartment real estate sector actually increased by 8% while the housing sector dropped by 24%.

Average housing sales fell by 55% in the first five months of this year compared to the same period last year and average deals also plummeted by 49%, the report added.

In Kuwait City three suburbs that are among the most active markets for vacant plots – Abu Futaira, Ishbilia and Funaitees – continued to attract buyers and real estate investors. Vacant plots in these areas alone accounted for 17% of all residential property sold during the month.

Loans from Kuwait's Saving and Credit Bank (SCB) also dropped in both size and value in May, recording the lowest level since April 2008, the report showed.

However, average loans for the first five months of the year rose 11% compared to last year, the report added.

The report is published at the same times as a GCC investor confidence survey shows that only 19% of real estate investors believe that the property markets had reached bottom.

The Shuaa Capital June survey also found that investors in Saudi Arabia are more confidence with some 37.1% believing that prices have bottomed out. However, 28.1% of respondents are still undecided.

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