KUWAIT CITY, Dec 21: The real estate market experienced extraordinary momentum in trading activity in the third week of December, achieving qualitative and quantitative growth in overall transactions. The total number of deals rose by 16.4 percent, while transaction values surged by 65.6 percent. This growth is largely fueled by the sharp rise in private real estate activity, which constituted 75.8 percent of all transactions recorded during the week, in terms of volume and value.

The newspaper obtained a copy of the weekly report issued by the Real Estate Registration and Documentation Departments at the Ministry of Justice, indicating that the total real estate transactions from Dec 14-18 reached 149 valued at KD156.3 million, compared to 128 deals worth KD94.4 million in the previous week -- an increase of 21 transactions or 16.4 percent, and a value growth of KD61.9 million or 65.6 percent.

The data revealed that private real estate is the primary contributor to this growth, recording 63.7 percent rise in the number of transactions and 210.6 percent increase in value. Private sector activity reached 113 deals worth KD105.3 million, compared to 69 deals valued at KD33.9 million in the second week. This trend entails sustained demand for private housing in various areas, supported by expectations surrounding the enforcement of the law on preventing monopoly of vacant land and the consequent increase in land supply. In contrast, investment real estate transactions declined slightly, totaling 30 deals worth KD29.6 million, compared to 33 deals valued at KD31 million in the previous week -- nine percent reduction in transaction volume or three fewer deals, and 4.5 percent decrease in value, amounting to KD1.4 million. This decline reflects investor caution and anticipation of market stability in view of the upcoming real estate legislation.

Meanwhile, commercial real estate activity witnessed a sharp decline, with transactions falling to five deals worth KD20.1 million, compared to 25 deals valued at KD26.9 million in the previous week -- 80 percent decline in volume, equivalent to 20 deals, and 25.2 percent decrease in value or KD6.8 million. Despite such decrease, the average value of commercial transactions significantly increased to KD4 million this week, up from KD1.1 million the week before, indicating higher demand for high-value premium properties. In the warehouse sector, transaction volume remained unchanged at one deal per week over the two periods. However, the value of these transactions fell by 50 percent, reaching KD1.3 million compared to KD2.6 million in the previous week, suggesting the conclusion of medium- to smallscale warehouse deals.

By Marwa Al-Bahrawi Al-Seyassah/Arab Times Staff