Meanwhile, the investment sector lost significant momentum during the month, contrary to expectations. Despite the resumption of visitor visas, trading activity in the investment sector fell by 33 percent in the number of transactions and 48 percent in value, suggesting that investors are waiting for greater clarity in housing and rental policies. In contrast, the commercial sector attracted the most attention, supported by major deals that propelled its growth by 139 percent in the number of transactions and 129 percent in value.

This positioned the commercial sector as the main driver of the real estate market during the month. The newspaper obtained a copy of the monthly statistical report on real estate transactions issued by the Real Estate Registration and Documentation departments in the Ministry of Justice. The report revealed that the total value of transactions in August reached around KD475 million for 514 transactions, compared to KD448.8 million for 579 transactions in July. This indicates a decline of 11 percent in the number of transactions and six percent increase in value. Residential property trading recorded a drop in August, with transactions falling from 377 deals worth KD143 million in July to 351 deals worth KD133 million in August— down by about seven percent in both number and value.

Investment property trading showed a steep decline, with the number of transactions falling from 177 deals worth KD189 million in July to 118 deals worth KD99 million in August—a drop of around 33 percent in transactions and 48 percent in value. This performance entails the continuation of sluggish demand for investment properties, despite the easing of entry restrictions through visitor visas. On the other hand, the commercial sector stood out as the ‘biggest gainer’, surging from 18 deals worth KD105 million in July to 43 deals worth KD240 million in August. This is a growth of 139 percent in the number of deals and 129 percent in value, firmly establishing the sector as the market’s primary driver for August, and potentially for the coming months amid sustained economic growth.

However, the crafts real estate sector witnessed a marked decline, dropping from four deals worth KD 5.2 million in July to just one deal worth KD 1.5 million in August — 75 percent decrease in number and 71 percent decline in value. Nevertheless, despite the overall drop in number and value, the average deal size increased by around 15 percent, indicating that the single deal executed in August was larger than the average deal recorded in July.