Kuwait’s property market witnesses remarkable activities in Q1

Kuwait’s property market witnessed a notable activity during the first quarter of 2019 in all its sectors amid ongoing state of steadiness and stability, which is most likely to last until the end of this year.

Obviously, the real estate sector, in general, continues to generate attractive profits in light of the current absence of other investment opportunities in the market, in addition to its value as one of the main necessities for citizens and residents.

Despite its sectors’ eminent activity early this year, the real estate market has gone through a recession last March due to owners’ redirecting their investments toward Kuwait Bourse, which saw, at that time, a considerable increase that prompted several investors to leave real estate temporarily for better chances in stocks.

Residential real estate, which makes up a substantial segment of the rental housing market, saw a balance in rental trends in the first quarter, where rental prices for two-room apartments at Capital and Hawally governorates were estimated between KD 240 and 290 monthly, equaling USD 790 and 960.

Meanwhile, the real estate market activity during the first quarter of 2019 focused on the residential sector in most areas, particularly the new ones, Kuwaiti real estate agents indicated.

The market’s activity pace is likely to keep up increasing during April until entering a stability state in May, which coincides with the Holy Month of Ramadan, said the real estate agents.

The activity pace during this year’s first quarter was stable, of which impact reflected through sale figures, showing a robust trading and an increase in prices in some residential areas, in addition to continued demand on investment properties for development purposes, said Manager of the Real Estate Al-Dulaijan Office Suleiman Al-Dulaijan.

The demand on the commercial sector has also seen a growth in all areas, especially in lower demand value areas such as Jelib Al-Sheyoukh, Al-Jahra, and Al-Mubarakiya, Al-Dulaijan noted, adding that such a growth would elevate chances for increasing the prices of these areas in the future.

He expected demand on cities such as Industrial Shuwaikh, Al-Rai, Herafi Ardiya, Qurain Markets, and real estate in general would remain on the rise due to investors’ continued speculating due to current absence of other investment opportunities in the local market.

Al-Dulaijan also expected that investment and commercial real estate inside and outside Kuwait see changes during the forthcoming period in light of continued governmental spending and unavailable opportunities in the residential sector due to conflicting with some laws since 2013.

He also expected an increase in private housing sector prices in the coming period for several reasons, including unchanged terms and conditions of bank loans, in addition to the influx of funds to the investment sector.

For his part, Chairman of Al-Dughaishem Real Estate Company Abdulaziz Al-Dughaishem said the performance of the real estate market during the first quarter of 2019 has seen an outstanding activity, particularly in the investment, commercial, and storing sectors.

Such a great momentum has had a positive impact on the auctioning sector, which witnessed an increase in prices in a number of strategic locations where properties were auctioned, Al-Dughaishem added, noting speculations were present at these auctions due to their high-value in in the residential sector.

The real estate market is still “hungry” for such opportunities, particularly in the residential sector, he noted, adding sale opportunities in this sector are very valuable as properties are sold swiftly to whoever owns instant liquidity.

Such a matter boosts desire in buyers to own properties for residential purposes amid a counter desire to buy properties for investment schemes, said Al-Dughaishem.

He expected the real estate market to see a temporarily recession in May due to the advent of the Holy Month of Ramadan as investment desire decreases, noting the recession could extend until the summer holidays.

Source: Kuwait News Agency (KUNA)