Sunday , October 22 2017

Promotion of ‘flats’ by building owners rapped – ‘Real estate fetching good rates’

KUWAIT CITY, March 27: Secretary General of Kuwait Real Estate Association Qais Al-Ghanim has denounced the manner in which some building owners are promoting their flats lately and obliging tenants to pay six months rent in advance in order to benefit from discount while signing the contract, reports Al-Rai daily.

He noted the act violates law, noting two types of contracts are applicable in Kuwait. The first contract involves furnished apartments that require approval of the Ministry of Commerce and Industry and the Interior Ministry.

He also said the second type of contract is for furnished flats, which is normally rented to tourists on contract basis and valid for six months. Meanwhile, president of the Real Estate Association Tawfeeq Al-Jarrah stated rent contracts are conditional on demand and request, and that six months contracts give tenants the chance to bargain for fee reduction.

Last week, the biggest real estate deal, which was worth KD5.8 million, was reportedly struck by a major player in the real estate market, reports Al- Rai daily. According to a source, this “big man” succeeded in acquiring a commercial property sitting on an area of 497 square meters for KD 2.6 million. He also got two buildings in Hawally and Salmiya investment areas on a total area of 1,487 square meters at a cost of KD 3.2 million.

The source said majority of the commercial and investment real estate sold last week went for good prices, adding that there were 13 commercial and investment real estate purchase deals worth about KD16 million in three governorates within that period.

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