The total credit facilities granted for real estate purposes, divided into 3 categories, are housing (installment) and real estate loans, granted for private and model housing, have taken an upward trend since the beginning of last year despite raising interest rates 7 times in 2022, as the Central Bank of Kuwait raised the discount rate by about 2 percent, from 1.5 percent during last March to 3.5 percent in December, before raising it for the eighth time by half a point in January 2023.
According to Al-Rai daily, based on figures issued by the Central Bank of Kuwait, it was found that the upward tendency of total real estate loans continued during the entire months of last year, as it reached about 24 billion dinars in January 2022, up by 0.6 percent compared to December 2021 when it reached 23.86 billion, and it also increased in February compared to 0.57 percent compared to January. to 24.212 billion dinars.
This upward trend also continued in March, although it witnessed the first “Central” increases in the discount rate by a quarter of a percentage point, as total loans granted for real estate purposes rose by about 1 percent compared to February to 24.458 billion dinars, then in April (+0.9 percent) to 24.68 billion, and in May (+1.15 percent) to 24.968 billion, while the figure stabilized in June, before rising again in July to 25.149 billion (+0.72 percent).
In August of last year, real estate loans increased to 25.211 billion dinars (+0.25 percent), in September (+0.99 percent) to 25.462 billion, in October (+0.49 percent) to 25.588 billion, and in November (+0.4 percent) to 25.687 billion, to end 2022 in December at the level of 25.689 billion dinars, with a slight increase of 0.007 percent.
The housing loans (installments) also witnessed an increase in all months of 2022, while they increased by about 9.4 percent to 15.74 billion dinars at the end of last December compared to 14.39 billion at the end of 2021, and by about 23 percent compared to the end of 2020 when it was 12.71 billion dinars.
As for the facilities granted to private and model housing during the past year, they increased by about 0.99 percent to 326.1 million dinars, compared to 322.9 million dinars at the end of 2021, while they increased by about 4.25 percent (13.3 million) compared to their level at the end of 2020 when they reached 312.8 million dinars.
As for the facilities granted to the real estate sector, they increased by about 468 million dinars (+5.1 percent) last year to 9.622 billion dinars, compared to 9.154 billion recorded at the end of December 2021, and it also witnessed an increase of 564 million (+6.22 percent) when compared to its level in end of 2020 amounting to 9.058 billion dinars.
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