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Private realty transactions account for the largest share
By Ahmad Fathi Al-Seyassah Staff KUWAIT CITY, Sept 10: During the first eight months of this year, real estate transactions in Kuwait saw the sale of approximately 2.9 thousand properties, boasting a collective value exceeding 2.06 billion dinars. These statistics were released by the Real Estate Registration and Documentation Department at the Ministry of Justice, spanning from the end of December 2022 to the close of August this year. Private real estate transactions accounted for the largest share, constituting 47.3 percent of the total value, amounting to 979.3 million dinars, with a total of 2.02 thousand properties changing hands. The investment real estate sector followed with a 30.7 percent share, valued at 635.6 million dinars, and involving 779 properties. Coastal real estate transactions accounted for 6.3 percent of the total value, at 130.6 million dinars, involving approximately 14 properties.
Meanwhile, the commercial real estate sector represented 13.3 percent of the value, totaling 276.76 million dinars, with around 81 properties. Additionally, 19 properties were traded for approximately 28.85 million dinars, and 3 warehouses were sold, amounting to a total value of 11.96 million dinars, along with two exhibitions worth 4.5 million dinars.
In terms of transactions by governorates, Al-Ahmadi Governorate secured the top spot with a 33.3 percent share, comprising 969 properties, including 669 residential, 253 investment, 45 commercial, and 2 coastal properties.
The second position was held by Hawalli Governorate with 17.3 percent, involving 504 properties, among which 264 were investment, 9 commercial, and 6 coastal properties. Mubarak Al-Kabeer Governorate followed in third place with a 13.3 percent share, with 387 properties including 232 residential and 138 investment properties. The Capital Governorate came in fourth with 12 percent, encompassing 284 properties, including 51 residential and 17 investment properties.
Al-Farwaniya Governorate rounded up the top fi ve with 11.4 percent, comprising 240 properties, including 72 residential, 7 investment, 8 craft, 1 exhibition, and 4 warehouse properties, along with 3 commercial properties. In August 2023, the total value of registered real estate contracts and agencies reached approximately 298.19 million Kuwaiti dinars, a signifi cant increase of 49.03 percent from the previous month, which recorded 200.09 million dinars in trading.
This uptick was accompanied by 407 properties changing hands with a combined value of 296.63 million dinars. Private real estate transactions led the way with 281 properties valued at 130.36 million dinars, followed by investment real estate with about 90 properties worth 119.28 million dinars, commercial real estate with 34 properties worth 42.89 million dinars, and two properties in the craft sector worth 4.10 million dinars. Al-Ahmadi Governorate registered the highest number of real estate deals at approximately 165 properties, while Al-Jahra Governorate recorded the lowest with only 24 deals. The value of real estate agencies during August amounted to about 1.56 million dinars, distributed among 5 private properties valued at 745 thousand dinars and two investment properties worth 815 thousand dinars. Real estate experts have noted a resurgence in real estate activity since the start of this year, particularly after the return to normalcy following the pandemic.
hey emphasized that the Ukrainian-Russian conflict has positively impacted local real estate prices, with investors turning to real estate as a safe investment during times of crisis and war. The gradual revival of economic activity, particularly in the investment and commercial real estate sectors, is expected to continue in 2023, as these were the areas most affected by the pandemic.
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