Kuwait real estate market booms with 323.40 mln dinars in October

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KUWAIT CITY, Nov 8: The real estate landscape in Kuwait has experienced a notable resurgence in recent months, primarily attributed to the Central Bank’s decision to maintain stable interest rates. This strategic move has significantly influenced investor behavior, redirecting their funds from other avenues, particularly bank deposits, which have become more appealing due to higher interest rates.

The impact of this shift was particularly evident in October, as real estate transactions witnessed a substantial uptick. According to statistics provided by the Department of Real Estate Registration and Documentation at the Ministry of Justice, the total value of contracts and real estate agencies registered during this period soared by an impressive 48.2%.

This surge brought the cumulative value to 323.40 million dinars, a significant leap from the 218.14 million dinars recorded in the preceding month of September. Delving into the specifics of this robust real estate activity, the data revealed that trading in October encompassed contracts for 467 properties, amounting to a total worth of 314.39 million dinars. These transactions were diversely distributed among the various governorates, with private real estate taking the lead.

A total of 330 private properties were traded, boasting a cumulative value of 141.01 million dinars. Following closely was investment real estate, comprising around 123 properties valued at 123 million dinars, and commercial real estate with 8 properties amounting to 83.63 million dinars. The statistics further showcased the diversity of real estate deals, including 6 transactions in the craft sector valued at 10.51 million dinars, a deal in the warehouse sector worth 2.70 million dinars, and a transaction in the coastal strip amounting to 1.10 million dinars.

Geographically, Al-Ahmadi Governorate emerged as the focal point of real estate activities, witnessing the largest number of deals— approximately 117 properties changed hands in this region. In contrast, Al-Jahra Governorate recorded a smaller number of transactions, totaling only 26 deals. This resurgence in real estate activity underlines the intricate interplay between economic factors, investor sentiments, and government policies, with the stability in interest rates playing a pivotal role in rejuvenating the real estate sector in Kuwait.

By Mahmoud Shendi
Al-Seyassah/Arab Times Staff

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