Kuwait’s real estate sales recovered in September after experiencing slower activity during the summer months, with sales totaling KD 372 million, up 16 percent year-on-year, a report has said.
Activity in September was supported by a strong performance in the investment sector which recovered strongly from the slower summer months, The Kuwait National Bank (NBK) said in its monthly report on Friday.
In addition, sales in the residential sector remained relatively soft despite a pick-up in September, mounting to KD 147 million during the month, down by 23 percent year-on-year.
According to the report, the number of transactions was 8 percent year-on-year. Residential activity was heaviest in the Ahmadi governorate, which accounted for 63 percent of all residential transactions during September.
The Mubarak Al-Kabeer and Hawalli governorates came in second and third, accounting for 15 percent and 7 percent of all transactions, respectively, the report states. In the residential sector, 73 percent of all transactions involved the purchase and sale of land or vacant plots. Meanwhile, the report added, the investment sector continued to see strong growth in sales, as the sector offered relatively attractive returns. Sales reached KD 207 million in September, up 73 percent year-on-year.
147 transactions took place during the month, an increase of 11 percent year-on-year. The average transaction size also increased, to KD 1.4 million.
In the investment sector, the report said, whole buildings accounted for 53 percent of all transactions. Apartments followed, with 33 percent. The Ahmadi governorate once again witnessed the bulk of activity. The largest transaction, however, involved the sale of buildings for KD 33 million in Salmiya. Transactions involving vacant plots accounted for 10 percent.
Volatile commercial sector sales rose in September, but remained subdued compared to average activity over the last year. Only five transactions were recorded during the month, the largest of which was a building in Kuwait City that sold for KD 4.6 million, the NBK report added.
Total sales reached KD 17 million. Over the past two months, the sector has witnessed several transactions in Sabah Al-Ahmad Sea City.
Housing loan approvals by the Kuwait Credit Bank (KCB) bounced back following a sharp decline the prior two months. The bank approved 484 loans worth approximately KD 29.3 million in September, the report concluded.
Source : KUNA Kuwait News agency
