KUWAIT CITY, June 17: Secretary- General of the Real Estate Developers Association Qais Al- Ghanim says the plan to impose increased electricity tariff gradually is a step in the right direction, affirming that fixing the tariff at 5 fils per Watt is a good idea at a time when there is no clear vision in that direction, reports Al-Seyassah daily.
Al-Ghanim stressed that the current financial situation of the state does not give the concerned officials any option other than to impose the new tariff, especially considering the amount that the World Bank has specified for covering the budget deficit. He insisted that sudden implementation of the tariff plan will reflect negatively on the market, due to which it is necessary to ensure the tariff situation is suitable for the national budget.
Regarding the rate at which auctions of real estate properties are on a rise in the country and its effects, Al-Ghanim revealed that the situation has caused a shock in the market to the extent of losing power, indicating that the market no longer has the ability to change its situation by itself. He said postponing the auction leads to deduction of 10 percent from the prices of the offered properties.
Al-Ghanim affirmed that the real estate market will be exceptionally active later, specifically after the months of August and September when several expatriate families are expected to migrate from the country en masse.
He reaffirmed that the prices of real estate will fall below expectation in a manner unprecedented in Kuwait, indicating that property owners, at that point, will be forced to reduce rents in order to be able to meet their financial commitments, especially considering the mortgage they are paying. He added that many other property owners will reduce rent due to fear of losing tenants who will be difficult to replace. Al-Ghanim urged the Council of Ministers and other concerned authorities to be more serious about giving expatriates the right to own property.