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Tuesday , August 20 2019

Recession gripping Kuwaiti realty market

KUWAIT CITY, July 20, (KUNA): Kuwait’s domestic property market was sluggish in the first quarter of 2019 largely due to fasting month of Ramadan and subsequent holidays, according to experts.

Speaking to KUNA, Al- Dlaijan Property Manager Suleiman Al-Dlaijan said housing and investment rates remained the same, adding that majority of housing traders were brokers and not housing seekers.

Trades in housing, investment and commercial sectors were low largely due to stakeholders’ preoccupation with Ramadan, Umra pilgrimage and family duties, he added.

Property was temporarily affected with regional developments, unlike trades in gold and other sectors and the prices were not noticeably affected too owing to short supply and tenants’ holding of their apartments, Al-Dlaijan noted.

On his part, Secretary of Kuwait Real-Estate Union Qais Al-Ghanim, also speaking to KUNA, said the market witnessed limited activity due to abundant financial resources among traders.

The housing sector wobbled due to a number of factors such as dependence on expatriates, he pointed out.

Currently, the market is unstable but the situation will change after annual holidays, Al-Ghanim added. Abdulaziz Al-Dghaishem, a property expert, said the market in the second quarter of 2019 witnessed fluctuation.

In April, it was noticeably active in all sectors. However, the situation changed in May where the market became gripped with temporary recession due to Ramadan and the Eid. The recession persisted in general in June, he said. The market is forecast to recover as off middle September, the expert expected.

Report by Mohammad Kamal

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