Kuwait real estate sales up 44pc
Kuwait, November 10, 2013
The real estate sales in Kuwait surged 44 per cent month-on-month in September to hit KD320 million ($1.12 billion) backed by the residential and investment sector which continued to put up a strong show, said a report.
Traditionally, September is a solid month as sales bounce back following the end of the quiet summer season. This year, sales may also have been supported by the timing of Ramadan, which fell in July/August, according to the National Bank of Kuwait (NBK).
Sector-wise, both the residential and investment sectors grew significantly m/m, though sales in the volatile commercial sector saw a sharp decline, the top Kuwaiti lender said in its report.
The sales in the residential sector soared to KD190.2 million in September with an 81 per cent month-on-month increase, thanks to a spurt in the number of transactions and their average size. The average transaction size was KD287,000 up 43 per cent m/m.
According to NBK, in terms of location, 54 per cent of transactions were in Ahmadi Governorate, while Mubarak AlKabeer came in second dropping Hawalii to third.
Also, 68 per cent of transactions were for plots versus 31 per cent for existing homes, said the report.
On the investment sector sales, NBK said the volumes in September surged about 120 per cent m/m from a depressed August to hit KD120 million. The average transaction size was at its highest since February 2012 at KD911,000 and the total number of transactions in September was up a solid 86 per cent m/m, stated the report.
Whole buildings made up almost half of all transactions in this sector, ending a five-month period in which transactions were mostly of individual apartments, it added.
According to NBK, the commercial sector sales dropped sharply to KD10 million in September from KD64 million in August. "Although this bucked the seasonal trend, sales in the sector are often volatile, and in any case, were coming off the strongest August in years. Overall, this sector has done exceptionally well in 2013 recording y/y growth in 7 out of 9 months so far this year," said the top lender in its report.
The savings and credit bank approved KD36 million in loans during September, while disbursing KD12.9 million, it added.
NBK pointed out that the value of disbursed loans increased 31 per cent m/m, and was the highest on record this year. "Also, similar to recent trends, about 86 per cent of disbursed loans were for new constructions," it stated.
"Similarly, 90 per cent of approved loans also went to new constructions while loans for the purchase of existing structures were 9 per cent of the total. Although approved by the SCB, an increase in the maximum applicable loan from KD70,000 to KD100,000 is still pending parliamentary approval," the NBK report said.-TradeArabia News Service