The weekly Al-Shall report reviewed developments in the local real estate market during November. According to data from the Ministry of Justice – Real Estate Registration and Documentation Department (after excluding both craft activity and the coastal strip system), there was a decrease in market liquidity in November 2024 compared to October 2024.
The total trading value for November reached about 322.2 million dinars, a decrease of -2.7%, from October’s liquidity level of 331.1 million dinars. However, it was higher by 11.6% compared to the November 2023 liquidity of 288.8 million dinars.
In November 2024, all trades were contracts, totaling 479 deals for the month. Al-Ahmadi Governorate had the highest number of deals with 202, representing about 42.2% of the total.
Hawalli Governorate followed with 93 deals, accounting for 19.4%, while Mubarak Al-Kabeer Governorate had the lowest number of deals with 32, making up about 6.7% of the total.
Private Housing Transactions
The value of private housing activity trading amounted to about 143.5 million dinars in November, down by approximately -13.3% compared to October, when it was around 165.6 million dinars. Its contribution rate also decreased to about 44.5% of the total real estate trading value, compared to 50.0% in October.
The monthly average value of private housing trading over the last 12 months was about 123.3 million dinars. The value of November’s trading was higher by 16.4% compared to this average.
The number of deals for this activity decreased to 362 deals compared to 388 deals, resulting in an average value of a single deal of about 397 thousand dinars in November. This is a decrease of about -7.1% compared to October’s average of 427 thousand dinars.
The value of investment housing activity trading reached about KWD 116.4 million in November, an increase of approximately 28.1% compared to October, when it was about KWD 90.9 million. Its contribution to total liquidity increased to about 36.1%, up from 27.4% in October.
The monthly average value of investment housing activity trading over the last 12 months, was about KWD 89.2 million. The value of November’s trading was higher by 30.6% compared to this average, of the last 12 months.
The number of deals in the investment housing activity increased to 114 deals in November compared to 102 deals in October. Consequently, the average value of a single deal for this activity reached about KWD 1.02 million, up from about KWD 891 thousand in October, representing an increase of about 14.6%.
Business Activity
The value of commercial activity trading decreased to about 62.3 million dinars in November, a decline of -9.9%, compared to October when it was around 69.2 million dinars. Its contribution to the total real estate trading value also dropped to about 19.3%, compared to 20.9% in October.
The average value of commercial activity trading over the last 12 months was about 57.5 million dinars. The value of November’s trading was approximately 8.4% higher than this average of the last 12 months.
The number of deals for commercial activity in November was 3, compared to 20 deals in October. Consequently, the average value of a single deal in November was about 20.8 million dinars, compared to the October average of about 3.5 million dinars, a significant increase of about 500.4%.
When comparing the total trading in November with the same month of the previous year (November 2023), it is clear that there was an increase from about 288.8 million dinars, to about 322.2 million dinars, which is a 11.6% rise as mentioned above.
The increase included a 61.1% rise in the liquidity of investment housing activity, and a 22.3% rise in private housing activity. Meanwhile, the liquidity of commercial activity decreased by -35.9%.
Optimistic Expectations
When comparing the total trading value from the beginning of this year, to the end of November with the same period in 2023, reveals that the total liquidity of the real estate market increased from about 2.705 billion dinars to approximately 3.078 billion dinars, reflecting a growth of 13.8%.
If market liquidity maintains its current level for the remainder of the year, the total value of real estate trading is projected to reach approximately 3.358 billion dinars, reflecting a 15.9% increase, compared to the previous year’s total of about 2.896 billion dinars.
Source: Al Qabas
