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Latest figures recorded see a 22.4% decrease
KUWAIT CITY, Jan 22: The latest figures recorded in the Real Estate Registration Department at the Ministry of Justice showed that the value of real estate transactions, from the beginning of the year until January 12, amounted to about 64.42 million dinars, recording a decrease of 18.58 million, or 22.4 percent, compared to the corresponding period of 2022, when it amounted to 83 million dinars, reports Al- Rai daily. The trading of the 12 days was distributed between about 63.88 million dinars contracts, and 543 thousand agencies, while the number of deals during the same period reached 123, distributed between 121 contracts and two agencies, compared to 214 deals that took place during the corresponding period of last year, a decrease of 42.5 percent, reports Al-Rai daily. The largest share of deals was in Al-Ahmadi governorate with 41 deals that constituted about 33.8 percent of the total, followed by Hawalli with 32 that constituted 26.4 percent, and then Mubarak Al-Kabeer with 19, while Al-Jahra had the lowest number of deals, after it recorded only two deals
The value of private housing activity trading during the first 12 days of 2023 amounted to about 40.9 million dinars, which took place through 91 deals, down by about 22.8 million dinars (-35.8 percent) from 63.7 million dinars during the same period last year through 179 deals.
Although the year 2023 is in its infancy, these numbers are consistent with the expectations of many real estate agents who suggested that this sector would enter a recession during the current year according to a number of data, not the least of which is the reluctance of investors to enter the sector, and the exit of a large number of speculators from it during the last period directed Their liquidity is transferred to deposits in banks, due to the high interest rates, in addition to the fact that the housing sector is in a state of chaos after the conversion of many homes into buildings that house many rented families, which departs from the goal assigned to it, in addition to the government’s study to raise electricity and water tariffs for the second house and upwards. This encourages investors to maintain liquidity and anticipate what will happen in the coming period
And the liquidity of private housing activity had recorded a decrease of 32 percent in 2022 compared to 2021, as the volume of contracts and agencies amounted to about two billion dinars, and its relative contribution amounted to about 53.4 percent of the real estate market liquidity, while it is expected that this trend will continue during the current year and may be at a faster rate, more severe compared to the previous two years. The value of investment housing activity trading during the first 12 days of this month amounted to about 20.73 million dinars through 29 deals, compared to 24.26 million dinars during the corresponding period of last year through 32 deals, a decrease of 14.5 percent.
The first 12 days of this year witnessed only one deal for warehouses at 2.25 million dinars, while commercial real estate, exhibitions, nurseries, or the coastal strip did not witness any movement. As for agency trades, the private real estate witnessed only two deals of 543 thousand dinars in the governorates of Jahra and Al-Ahmadi, while the investment, commercial, handicraft, exhibitions, warehouses, or coastal strip did not record any change during the period.