Kuwait-Mubasher: The real estate market in Kuwait remains weak despite a pick-up in the commercial sector, as total real estate sales reached KWD 2.5 billion by the end of October; down 29% from the same period of 2014, according to a report issued by NBK.
Total residential sales amounted to KWD 1,138 million in 2015 and KWD 73.2 million in October.
“This recent drop in plot sales is likely, in part, the result of earlier speculative activity in the residential land sector. This has been highlighted as well by the Real Estate Union annual report published recently, that states that around 21% of the residential properties are sold for speculative purposes,” noted NBK’s report.
It is worth highlighting that over the past years, the Central Bank of Kuwait (CBK) took some macro-prudential actions that may have helped calm the real estate market.
Index of investment building was 8% higher for the year, almost half the growth registered throughout the past six months, said NBK in its report.
