KUWAIT CITY, July 14: Recent data from the Real Estate Registration and Documentation Department of the Ministry of Justice revealed a decrease in liquidity within Kuwait’s real estate market for June 2024 compared to the previous month, reports Al-Jarida daily. The total value of contract trades in June amounted to approximately 316.4 million dinars, marking a decline of - 15.7 percent from May’s liquidity level of 375.4 million dinars.

However, this figure represents a significant increase of 50.6 percent compared to June 2023, which recorded 210.1 million dinars in transactions. June 2024 saw a total of 323 contract deals, all of which contributed to the market’s liquidity dynamics. Al-Ahmadi Governorate led with 119 deals (36.8 percent of the total), followed by Hawalli Governorate with 73 deals (22.6 percent), while Al-Jahra Governorate reported the lowest number with 19 deals (5.9 percent). Transactions in private housing activities totaled around 107 million dinars, down - 20.6 percent from May’s 134.8 million dinars. This sector constituted 33.8 percent of total transactions, a slight decrease from May’s 35.9 percent while the average value per transaction increased by 7.4 percent to approximately 491 thousand dinars.

The investment housing activities surged to about 112.1 million dinars, up 56.3 percent from May’s 71.7 million dinars. This sector’s contribution to total liquidity rose to 35.4 percent from 19.1 percent in May. Despite fewer transactions (84 compared to 103 in May), the average transaction value rose sharply by 91.7 percent to about 1.3 million dinars. The commercial activity, however, declined sharply to 93.7 million dinars, a - 43.0 percent decrease from May’s 164.5 million dinars. This sector’s contribution to total transactions fell to 29.6 percent from 43.8 percent in May, while the average transaction value for commercial activities decreased by -40.0 percent to approximately 4.9 million dinars.

The warehouse activities saw two transactions worth 3.6 million dinars in June 2024, down - 16.9 percent from May’s 4.3 million dinars. Comparing June 2024 to June 2023, the market showed a 50.6 percent increase in liquidity, driven primarily by a substantial rise of 180.8 percent in commercial activity liquidity. For the first half of 2024, total market liquidity increased by 11.2 percent compared to the same period in 2023, reaching approximately 1.573 billion dinars. If market liquidity continues at the current rate for the remainder of the year, projected annual trading could reach approximately 3.145 billion dinars, an 8.6 percent increase over the previous year. These insights highlight the dynamic shifts within Kuwait’s real estate market, reflecting changes in transaction volumes and sectoral contributions amid fluctuating economic conditions.