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KUWAIT CITY, Feb 27: Kuwait Finance House (KFH) Executive Manager – Real-estate Valuation, Ahmed Al-Farhan said that during 2022, the Real Estate Valuation Department valuated 16634 properties for individuals, corporates, banks and government institutions with market value approximating KD 28.2 billion. He indicated that the department at KFH has gained the trust of clients.
He added in a press release that the growth rate in the number of real estate properties valuated by KFH amounted to 1.7% on an annual basis. This confirms the capabilities and experience of KFH human talents in the field, in addition to the confidence of different clients in the Bank.
Further, due to its solid organizational structure, KFH has the best valuation performance in the market, making it a preferred destination in real estate valuation of all sectors and a trusted source by the Central Bank of Kuwait (CBK) and the Capital Markets Authority (CMA).
He explained that KFH valuation covered 7 segments of real estate. Private residence took the lead by 39.1%, investment real estate came second with 36.6%, followed by industrial and handcraft plots by 8.4% and commercial real estate by 6.8%. Feasibility studies came at 6.4% followed by agricultural real estate, hotels, medical clinics, chalets at 2.7%. Other properties under different regulatory views were also valuated.
Al-Farhan pointed out that KFH is keen on developing the real estate valuation internally by supporting the work of the department through hiring specialized engineers and employees, organizing comprehensive training programs for the team, and expanding the areas of valuation into new and special nature activities.
He added that, at the market level, KFH’s efforts are reflected in contributing to the development of the capabilities of employees in the valuation offices, while improving the level of performance and enhancing the social role of KFH through professional work based on its leading experience in the field, reliability, and transparency.
He pointed out that KFH adopts international standards including cost, rate of return, common sale price, and standard practices for the valuation of all segments of real estate based on organizational opinion and usage.
He highlighted the significant role of real estate valuation activity for the economy, capital market performance towards real estate and investment companies, reservation of KFH shareholders rights, and in providing services to other listed and unlisted companies and banks. The valuation process is also vital for arbitration purposes between individuals. Real estate is considered as one of the valuable assets and one of the main investment fields.
He added that KFH is an accredited valuation entity supported by a huge data base and a highly skilled technical team (engineering, legal and accounting) which conducts its functions based on administrative and engineering reports and market development follow up, as per an approved official price list. This helps the department provide the highest performance and quality of service in the valuation field.
Accordingly, KFH has become the most favorable valuation destination for major companies, institutions, and high value and multiple usage real estate of different spaces, as well as for individuals in cases of inheritance, litigation and exits. He expressed his trust that the department will surely develop further, considering the great interest which the Executive Management at KFH has expressed in developing the valuation functions and the growth of this industry which is important to the real estate market.
Al-Farhan commended the interest and concern which CBK, CMA and the Ministry of Commerce and Industry showed towards the follow up of the development process of real estate valuators and the valuation activity itself. In addition, he praised Kuwait Banking Association for organizing training courses to enhance valuators’ skills and develop their performance and awareness of the latest real estate valuation standards regionally and globally, thus enhancing the significance of this profession and its role in the national economy movement.