‘Ministry will protect citizens from falling prey to fraud’
KUWAIT CITY, Oct 24: Secretary General of Kuwait Real Estate Union Qais Al-Ghanim affirmed that there is no pressure from traders on the real estate market, and that the controller of the market continues to be demand and supply only, reports Al-Nahar daily. During an interview with the daily, he totally dismissed the collapse of the real estate market, stressing that the current decline is an expected reaction to the wave of abnormal increase in rental properties in the past few years, especially in the investment sector, which is suffering from high supply.
Al-Ghanim explained that this high supply is expected to increase to unprecedented levels especially with the increased out-flux of expatriates due to the trend of ending their services in the public sector and to a certain extent in the private sector as well because of the recently-imposed new charges of health services provided to expatriates as well as increase in the cost of living but without any increase in their salaries.
These and other negative factors are the result of economic conditions such as the collapse in oil prices, the budget deficit as well as the political crises in the region. As for the real-estate exhibitions, and the turmoil and hubbub that have been witnessed in the sector, he said the real estate exhibitions will be organized in a modern manner under the control of a specialized committee headed by the Minister of Commerce and Industry, adding that the ministry will protect Kuwaitis from falling prey to corruption and fraud.
He indicated that the residential sector has been affected but not as much as the investment residential sector, clarifying that the impact on residential sector is different depending on the area and the demand for it as well as who owns these residential plots and whether they are meant for investment or housing purposes.