Kuwait’s real estate market saw a remarkable surge in the first two months of this year, January and February, with the total value of transactions soaring by 38.8% to approximately KWD 615.45 million, compared to KWD 443.34 million during the same period last year. This growth was accompanied by a 21.6% increase in the number of transactions, rising from 726 to 883 deals during the same period last year.
This impressive growth is largely driven by a surge in trades within the crafts sector, which experienced an extraordinary 533.3% increase in transaction volume, jumping from just three deals last year to 19 this year. The sector’s total value also skyrocketed by 599.2%, reaching approximately KWD 36 million compared to KWD 5.15 million during the same period last year.
Transactions across the residential, investment, commercial, and warehouse sectors also saw notable growth, reflecting the overall strength of Kuwait’s real estate market. Additionally, three shops in the Qibla area, spanning a total of 37 square meters, were sold for an impressive KWD 1.24 million, underscoring the high value and demand for prime commercial spaces.
Many Deals
The total value of the residential sector increased by 2.3%, reaching KWD 244 million through 615 transactions, compared to KWD 238.4 million from 532 transactions during the same period last year.
The investment sector saw a significant surge, with its total value rising by 89.3% to approximately KWD 264.9 million through 232 transactions, compared to KWD 139.9 million from 173 transactions in the same period last year.
The commercial sector experienced a 21.3% increase in total trade value, reaching approximately KWD 61.9 million across 12 transactions, compared to KWD 51 million across 13 transactions during the same period last year.
In the warehousing sector, despite a decline in the number of transactions, the total value increased to KWD 7.3 million from just two deals, compared to KWD 6.4 million across four deals during the same period last year.
Real Estate Transactions
A comparison of real estate trading volumes between January and February of this year and the preceding months of November and December reveals a 20.6% decline in total transaction value. During the first two months of this year, real estate transactions amounted to approximately KWD 615.4 million across 883 deals, compared to KWD 775.2 million across 1,018 transactions in the last two months of the previous year.
This decline is primarily driven by reductions across most sectors, particularly residential, investment, and commercial. The commercial sector experienced the sharpest drop, with total transaction value plunging by 50.1% to approximately KWD 61.9 million across 12 deals, compared to KWD 124.1 million across 18 deals in November and December.
In the investment sector, the trading value declined by 22.5%, falling to KWD 264.9 million across 232 transactions, compared to KWD 341.8 million across 268 transactions in the previous two months.
In the residential sector, the total transaction value dropped by 16% to approximately KWD 244 million across 615 transactions, compared to KWD 290.2 million across 719 transactions in the previous two months.
One of the key reasons for the decline in trading during the first two months of this year is seasonal factors, as January and February include several holidays, notably National Day in February. Additionally, economic and political shifts, along with evolving market trends and future expectations, played a role in dampening activity, particularly impacting the overall value of the residential sector.
Source: Al Qabas
