Chalet prices see 15% decline – Imaginary rates few can afford

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KUWAIT CITY, Oct 24: The Sabah Al- Ahmad Marine and Al-Khairan areas witnessed a price decline of about 15 percent, since the end of the second quarter of this year in light of the decline in real estate deals and the rise in banking interest rates, reports Al-Jarida daily. However, the real estate sources reported that the deals on “chalets” in these two areas witnessed a noticeable decline, for many reasons; including the rise in interest rates, which in turn affected part of the liquidity of this sector, in addition to the fact that real estate prices reached fantastic numbers during the last period, which made purchasing power limited to a certain category.

The Sabah Al-Ahmad marine area witnessed a high demand, which raised the prices of chalets at that time by no less than 70 percent, within a short period, as the chalets were witnessing a heavy turnout from the public, due to the travel restrictions related to Covid-19 pandemic at that time, in addition to high liquidity in the market, and there was no outlet other than this sector.

On the other hand, a number of real estate professionals confirmed that the effect of raising bank interest rates will affect certain real estate sectors, including chalets and the investment sector, and its impact will be limited on the residential sector, due to several factors; including the high demand and its exclusion from raising the electricity and water tariffs that are applied to other sectors.

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