Kuwait property sales rise 24% in January
Kuwait’s real estate data for January 2014 show that sales were rising by 24 per cent year-on-year to 315 million Kuwaiti dinar. In its latest economic updated, the National Bank of Kuwait said sales fell in month-on-month terms, but only after a very strong December. A strong performance from the investment (i.e. apartment/buildings) sector boosted the market for a third month in a row, while sales in other sectors moderated slightly.
Sales in the residential sector reached 142 million dinar in January, a 2 per cent year-on-year drop. This decline came despite a continued surge in average transaction values (+46 per cent year-on-year), which was effectively offset by a decline in the number of transactions (-32 per cent year-on-year). January registered 368 residential transactions, the lowest since February 2013. Furthermore, the number of transactions has now declined for four months in a row in year-on-year terms. Given rising average transaction values, however, it is too soon to associate this with a drop in demand.
In terms of location, a third of transactions were in Ahmadi governorate, mostly in the Sabah Al Ahmed Sea-City. Another third went to Mubarak Al Kabeer governorate, which saw three coastal residential transactions valued at 2 million dinar each. Sales of land plots – as opposed to finished buildings – accounted for 60 per cent of all residential transactions in January, down from recent highs.
Sales in the investment sector increased to 141 million dinar in January, up 88 per cent year-on-year. These sales have continued to drive the real estate market for the past three months. The number of transactions stood at 197, an increase of 76 per cent year-on-year. The sector has long been viewed as a strong alternative to the stock market for investing.
Individual apartments made up more than half of all transactions in the investment sector – the majority in Mahbola. Whole buildings came in second, accounting for 38 per cent of transactions, followed by plots with a 6 per cent share.
Sales in the commercial sector dropped 6 per cent to 32 million dinar in January, from 34 million dinar a year earlier. Nine transactions were recorded in the sector with two of these exceeding 3 million dinar. Sales in this sector are particularly uneven, and while 2013 was an exceptional year for the sector, part of this may have come from purchases by government-held portfolios.
Kuwait's real estate data for January 2014 show that sales were rising by 24 per cent year-on-year to 315 million Kuwaiti dinar. In its latest economic updated, the National Bank of Kuwait said sales fell in month-on-month terms, but only after a very strong December. A strong performance from the investment (i.e. apartment/buildings) sector boosted the market for a third month in a row, while sales in other sectors moderated slightly. Sales in the residential sector reached 142 million dinar in January, a 2 per cent year-on-year drop. This decline came despite a continued surge in average transaction values (+46...
Kuwait’s real estate data for January 2014 show that sales were rising by 24 per cent year-on-year to 315 million Kuwaiti dinar. In its latest economic updated, the National Bank of Kuwait said sales fell in month-on-month terms, but only after a very strong December. A strong performance from the investment (i.e. apartment/buildings) sector boosted the market for a third month in a row, while sales in other sectors moderated slightly.
Sales in the residential sector reached 142 million dinar in January, a 2 per cent year-on-year drop. This decline came despite a continued surge in average transaction values (+46 per cent year-on-year), which was effectively offset by a decline in the number of transactions (-32 per cent year-on-year). January registered 368 residential transactions, the lowest since February 2013. Furthermore, the number of transactions has now declined for four months in a row in year-on-year terms. Given rising average transaction values, however, it is too soon to associate this with a drop in demand.
In terms of location, a third of transactions were in Ahmadi governorate, mostly in the Sabah Al Ahmed Sea-City. Another third went to Mubarak Al Kabeer governorate, which saw three coastal residential transactions valued at 2 million dinar each. Sales of land plots – as opposed to finished buildings – accounted for 60 per cent of all residential transactions in January, down from recent highs.
Sales in the investment sector increased to 141 million dinar in January, up 88 per cent year-on-year. These sales have continued to drive the real estate market for the past three months. The number of transactions stood at 197, an increase of 76 per cent year-on-year. The sector has long been viewed as a strong alternative to the stock market for investing.
Individual apartments made up more than half of all transactions in the investment sector – the majority in Mahbola. Whole buildings came in second, accounting for 38 per cent of transactions, followed by plots with a 6 per cent share.
Sales in the commercial sector dropped 6 per cent to 32 million dinar in January, from 34 million dinar a year earlier. Nine transactions were recorded in the sector with two of these exceeding 3 million dinar. Sales in this sector are particularly uneven, and while 2013 was an exceptional year for the sector, part of this may have come from purchases by government-held portfolios.
