Kuwait real estate sales down after a strong December
KUWAIT, February 28, 2017
Following a stellar performance in December, the real estate market softened in January, as monthly sales fell back below KD200 million ($660.4 million), according to a report.
The value of sales decreased to KD179.5 million, lagging last year’s performance by 16 per cent, stated the National Bank of Kuwait in its monthly review.
This was despite a slight pickup in transaction volumes, which rose by 2 per cent year-on-year (y/y).
January’s price performance, as reflected in NBK’s real estate price indices, indicated further stabilization in the residential sector and convergence of trends across sectors.
According to NBK, the residential sector sales were steady, remaining close to the 2016 monthly average.
January KD sales totaled KD 78.4 million on 240 transactions. KD sales and transactions were both down 13 per cent and 4 per cent y/y, respectively.
A third of the transactions were land purchases, with a high concentration in Sabah Al-Ahmad Sea City,
Funaitees and Abu Fatira. The stability in the residential market’s activity was reflected in the price performance, it stated.
The NBK residential home price index stood at 151.4, almost flat for the month, but down by 12 per cent y/y.
The index has been in the vicinity of 151-152 points for the last four months. Meanwhile, the residential land price index inched slightly upward in January to 182.2, though it remains down 3.8 per cent y/y. The index has been hovering around the same price level for the last seven months.
Investment sector sales continued to improve in January, though they remained frail compared to 2015 sales, said the NBK in its report.
Sales totaled KD 66.8 million, up 5 per cent month-on-month (m/m), on 115 transactions. Although the sector’s sales are gradually picking up from a low level of KD40 million recorded last September, it remains down 31 per cent y/y and 65 per cent below the average sales recorded in 2015, it added.-TradeArabia News Service