42.9 C
Tuesday 22 June 2021
HomeWorldKuwait’s real estate activity weakens

Kuwait’s real estate activity weakens

Real estate sales activity continued to decline during May, falling to its second weakest level in five months. A total of 314 sales transactions were registered at a value of KD 80.1 million. National Bank of Kuwait reports that, sales volume fell 17% from the previous month. The residential sector saw moderate growth with value and number of transactions rising by 3% and 7% respectively. NBK noted the drop in May sales values came largely from a decrease in commercial sales, which saw a 66% decline.

In May, 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. Meanwhile, average transaction sizes during the month were up 8% for apartments, while residential and commercial property fell by 4% and 24%, respectively. NBK reported that average real estate sales during the first five months of 2009 dropped by 55% in value and 49% in number compared with the same period last year. Most of the decline in sales value occurred in the apartments sector, where sales values dropped by 63%. The residential and commercial sectors were not spared, with sales values down by 57% and 14%, respectively.

In May, approved loans by the Savings and Credit Bank (SCB) were down by 26% and 29% (m-o-m) in number and value, respectively, to their lowest levels since April 2008. The SCB approved 340 loans with a value of KD 12.5 million. Compared with April, approved loans for construction of new homes and for purchase of existing homes fell by 37% and 15%, respectively. However, for the first five months of 2009, the KD volume of approved loans was up by 96% from the comparable period in 2008 (driven by the last distribution of land plots). Meanwhile, the SCB disbursed KD 13.7 million in loans during May, 9% lower than the previous month, though the five-month average was ahead by 11% compared to the previous year.


Please enter your comment!
Please enter your name here

- Advertisement -