Kuwait real estate sales see strong performance

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Kuwait_Real_estateKuwait has registered a 10 per cent year-on-year growth in its real estate sales which soared to $1.41 billion in December 2013 when compared to last year on the back of a strong investment sector, according to country’s top lender National Bank of Kuwait (NBK), the Saudi Gazette reported.

December’s sales numbers were supported by an exceptional performance from the investment sector. Annually, 2013 was a record year with total monthly sales averaging at $1.1 billion. Furthermore, total sales grew 18 per cent compared with 2012.

According to NBK, the sales in the residential sector reached $554 million in December 2013, down 24 per cent year-on-year. This decline came despite a continued surge in average transaction values (over 38 per cent), which was effectively offset by a sharp decline in the number of transactions (down 44 per cent).

The decline in sales was due to an unfavourable base effect rather than weak sales per se. Large swings are not uncommon in a property market where month-to-month trading volumes are relatively low, stated the top bank in its report.

“Annually, the sales in the residential sector continued to rise, up 6 per cent year-on-year from 2012 to $6.4 billion. This is despite the number of transactions dropping 20 per cent to 6,325. Indeed, it is likely that limited housing supply is one factor that continues to push prices higher,” the NBK report added.

In terms of location, half of transactions were in Ahmadi Governorate, mostly in the Sabah Al-Ahmed Sea-City. Mubarak Al-Kabeer governorate accounted for a further 36 per cent. Sales of land plots – as opposed to finished buildings – accounted for 57 per cent of all residential transactions in December.

Sales in the investment sector increased to a record $735 million in December, up 79 per cent year-on-year. The previous sales record was $653 million in April 2007, confirming that sales have returned to pre-financial crisis levels. The number of transactions in the sector reached 198, a 54 per cent increase.

Whole buildings made up 42 per cent of all transactions followed by individual apartments with 38 per cent – mostly in Mahbola. Several large transactions drove sales in the investment sector to record heights, said the country’s top lender.

The Kuwaiti bank said 2013 was an exceptional year for the commercial sector, with sales up in 8 months of the year. The increase was driven by a large number of transactions which, at 178, more than doubled their 2012 levels, the report added.

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Kuwait has registered a 10 per cent year-on-year growth in its real estate sales which soared to $1.41 billion in December 2013 when compared to last year on the back of a strong investment sector, according to country’s top lender National Bank of Kuwait (NBK), the Saudi Gazette reported. December’s sales numbers were supported by an exceptional performance from the investment sector. Annually, 2013 was a record year with total monthly sales averaging at $1.1 billion. Furthermore, total sales grew 18 per cent compared with 2012. According to NBK, the sales in the residential sector reached $554 million in December...

Reading Time: 2 minutes

Kuwait_Real_estateKuwait has registered a 10 per cent year-on-year growth in its real estate sales which soared to $1.41 billion in December 2013 when compared to last year on the back of a strong investment sector, according to country’s top lender National Bank of Kuwait (NBK), the Saudi Gazette reported.

December’s sales numbers were supported by an exceptional performance from the investment sector. Annually, 2013 was a record year with total monthly sales averaging at $1.1 billion. Furthermore, total sales grew 18 per cent compared with 2012.

According to NBK, the sales in the residential sector reached $554 million in December 2013, down 24 per cent year-on-year. This decline came despite a continued surge in average transaction values (over 38 per cent), which was effectively offset by a sharp decline in the number of transactions (down 44 per cent).

The decline in sales was due to an unfavourable base effect rather than weak sales per se. Large swings are not uncommon in a property market where month-to-month trading volumes are relatively low, stated the top bank in its report.

“Annually, the sales in the residential sector continued to rise, up 6 per cent year-on-year from 2012 to $6.4 billion. This is despite the number of transactions dropping 20 per cent to 6,325. Indeed, it is likely that limited housing supply is one factor that continues to push prices higher,” the NBK report added.

In terms of location, half of transactions were in Ahmadi Governorate, mostly in the Sabah Al-Ahmed Sea-City. Mubarak Al-Kabeer governorate accounted for a further 36 per cent. Sales of land plots – as opposed to finished buildings – accounted for 57 per cent of all residential transactions in December.

Sales in the investment sector increased to a record $735 million in December, up 79 per cent year-on-year. The previous sales record was $653 million in April 2007, confirming that sales have returned to pre-financial crisis levels. The number of transactions in the sector reached 198, a 54 per cent increase.

Whole buildings made up 42 per cent of all transactions followed by individual apartments with 38 per cent – mostly in Mahbola. Several large transactions drove sales in the investment sector to record heights, said the country’s top lender.

The Kuwaiti bank said 2013 was an exceptional year for the commercial sector, with sales up in 8 months of the year. The increase was driven by a large number of transactions which, at 178, more than doubled their 2012 levels, the report added.

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