KUWAIT CITY, Dec 27, (KUNA): The national real-estate market posted decline in November as a result of domestic political events namely resignation of the government and dissolution of the parliament, according to a report released by Emaar Al-Ahlia Real-Estate Company on Tuesday.
Prices of plots rose in November, coinciding with drop of trading in the sectors of housing and investment properties, the report said, forecasting prospected hike in the commercial units deals in December.
Recent government decision allowing divorced women to seek bank loans would impact positively on the sector, possibly in the third quarter of 2012, and might lead to rise of prices of land plots.
Repercussions of the financial crisis in Europe and the United States was one of the major causes of the drastic fall of the indexes of the property trades at the national level, in November.
As a remedy, the company proposed promoting housing ventures, within the framework of the overall national development scheme, for meeting mounting demand for residences.
Total value of trades reached KD 144 million in November, at a rate of 566 plots, with a 102 percent drop in contrast to October, when the overall value of the deals reached KD 289 million.
Trades in housing plots reached KD 93 million in November, at a rate of 473 transactions, falling 61 percent compared to October, when the deals value was recorded at KD 169 million.
The report said that the commercial units’ sector posted noticeable hikes due to the rise of rents. It also called for scrutiny while granting construction permits to ensure builders would secure parking lots and other affiliate services to help in alleviating the thorny problem of traffic.
Value of traded investment plots reached KD 48 million in November, at a rate of 89 units, the reported elaborated further. Moreover, commercial real-estate posted dramatic fall in November, due to declining status of some companies that sought to sell some properties to secure funds for paying dues.