KUWAIT CITY, Jan 8: CEO of Blue Print Shareholding Company Meshal Al-Melham ruled out the possibility of a crisis affecting the real-estate sector in Kuwait due to the recent decisions related to expatriates, reports Al-Rai daily. He said the market will adapt to the consequences quickly, affirming that the matter is related to demographic reform and not expulsion of expatriates.
Al-Melham reiterated that the market will be able to adjust to the reduced number of expatriates, indicating that trade and investment movement in the real estate sector has declined recently due to worries over the increased water and electricity tariffs. He revealed that the recent fall in the prices of houses is part of the process of correcting the path following a period of unjustified hike in the real-estate prices, affirming that this is the way the real estate sector corrects its mistakes.
Al-Melham explained that there are two reasons behind Kuwaiti citizens’ tendency to buy real estate properties overseas. The first reason is personal. Since some citizens often travel to certain countries for studies or medical treatments there, they choose to buy real estate there.
The second reason is related to investments. He insisted that the main problem in the real estate sector in Kuwait is that the cost of a building is KD 200,000 to KD 400,000, and that of a flat is about KD 80,000.
On the other hand, the cost of a flat in Britain is 75 percent lesser (about KD 20,000) with a yearly revenue rate higher than five percent.
Meanwhile, revenues of the Governmental Tests Center in the Ministry of Public Works increased remarkably in the previous year – around KD 88,000, reports Al-Qabas daily quoting sources. Sources disclosed the abovementioned amount includes fees for tests and accreditation of certificates at the center which conducted 8,185 tests within the same year.Sources attributed the remarkable revenue increase to various factors such as the Constructional Laboratories Department’s entry of 170 new tests to the center after determining the technical specifications of a huge quantity of construction materials