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NBK notes 'resurgence' of residential property in Kuwait

Property sales worth $512.5m were recorded this August, with National Bank of Kuwait stating that "seasonality pulled [...] down" this figure

Kuwait's property sector was 'relatively stable' this August [representational image].
Kuwait's property sector was 'relatively stable' this August [representational image].

Kuwait's real estate sector was 'relatively stable' this August, with investor interest in residential property steadily increasing. 

According to National Bank of Kuwait (NBK), Kuwait's property sector recorded sales worth $512.5m (KWD154.5m) in August, adding that "seasonality pulled the monthly sales figure down slightly". 

Year-to-date (ytd) sales across all sectors amounted to $5bn (KWD1.5bn), a 5.4% drop compared to corresponding figures for 2016. 

READ: Kuwait records 12% YoY rise in July real estate sales

However, NBK's report added, the residential sector "was particularly strong in 2017, compensating for the subdued activity in the investment and commercial sectors".

Citing NBK's findings, KUNA reported: "Prices continue to stabilise, though they remain down by 5% to 10% year-on-year, according to the report.

"2017 witnessed the resurgence of investor interest in the residential sector, following weaker demand since end-2015." 

Over the last eight months, 1,134 homes were sold in Kuwait, at an average of 173 homes per month.

The figure is 24% higher than corresponding figures for the same period last year. 

READ: Kuwait's Tamdeen earns $23m H1 2017 net profit

"Similarly, regained interest in residential land has been noticed in 2017, with 924 plots sold so far," KUNA's report continued.

"However, it remains substantially lower than the 1,432 plots sold during the first eight months of 2015," according to NBK's findings.

Despite an improvement in investor interest this year, NBK's report stated that residential sales "were soft" this August, "recording the lowest monthly sales in almost a year".  

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Construction Week - Issue 758
Feb 08, 2020