Demand for sea chalets up
KUWAIT CITY, Nov 9: Kuwait’s real estate market has witnessed a “noticeable rebound” during the third quarter of this year, particularly in investment and residential sectors as well as a rise in demand for sea chalets, recovering from ramifications of coronavirus pandemic, experts said. However, commercial and industrial sectors as well as farm lands are still suffering from temporarily stagnation due mainly to high prices of lease contracts and electricity as well as lack of some services, they said.
The experts, in different statements to KUNA, expected the real estate market to recover by beginning of next year. This might be driven by economic incentives to be discussed by the National Assembly, or parliament, during its current session which would positively impact economic sectors, including real estate. Ahmad Al-Duwaihees, Secretary General of the real estate union, said residential sector witnessed a rise in supply but sales were minimal.
He expected prices to recover in 2022 following the introduction of economic incentives which would support the investment sector that was devastated by the pandemic, as operation costs were higher than occupancy. He said prices at the commercial sector were “inflated and overrated in most areas.” Abdulaziz Al-Dughaishem, of Al-Dughaishem Real Estate Agency, noted that supply out-numbered demand on sea chalets at Al-Khairan Area. He said investment sector started recovering with a rise in demand which showed that the economic cycle returned to normal.
Emad Haidar, Deputy Chairman of Brokers Union, confirmed investment and commercial sectors were recovering from Covid-19 impacts. He expected local market to witnessed a remarkable improvement with full reopening of Kuwait International Airport which would increase demand on private houses in Hawally, Salmiya and Farwaniya Area. Kuwait Finance House said in a recent report real estate transactions in the second quarter 2021 amounted to 1.1 billion Kuwaiti Dinars (KD) (USD 3.6 billion), 15 percent higher than previous quarter which registered KD 929 million (USD 2.9 billion). By Mohammad Kamal , (KUNA)