Real estate sales and lending are on the rise in Kuwait, according to a report published by the National Bank of Kuwait (NBK) in last month.
Total sales reached KD261mn ($865mn) in February, up 22 percent over January and a 17 percent year-on-year increase, with commercial sales surpassing residential sales for the first time in nearly a decade.
The investment and commercial segments performed especially well in February, with commercial sales reaching KD90mn ($298mn) in February, more than tripling the KD27.8mn ($92mn) recorded in January. In addition, NBK stated that Investment property sales rose by 5.8 percent y-o-y to KD93.9m ($311m). The sales volumes increased by 65 percent, indicating a move towards smaller-ticket investment apartments.
On the other hand, the residential segment recorded the lowest number of transactions ever recorded for the month of February. The sales declined by 28 percent y-o-y in February to KD76.7mn ($254mn) and the number of transactions was down 29 percent to 221.
The construction of 174,000 new housing units for Kuwaiti citizens by 2020, announced by the government in March 2013, is expected to create new opportunities for private investment and to extend benefits to private construction contractors.
Following a delivery of 12,000 new units in 2015, construction tenders for new residential projects are set to be released in December.
Kuwaiti nationals are legally entitled to government-subsidised housing after marriage. Lending at Kuwait Credit Bank (KCB), which provides home-building loans and mortgages to Kuwaiti nationals, has been on the rise, jumping by 51 percent y-o-y in February to hit KD23m ($76m), NBK reported.
Source: Arabian Business