The report issued by the Kuwait Finance House (KFH) said the real estate companies listed on the Kuwait Stock Exchange (KSE) Market were affected by the rise in the price index of the real estate sector at the end of the second quarter by 32.7% on an annual basis, and 16.5% on a quarterly basis, while the market value of the real estate sector in the market increased.
The main index ticked KD 1.6 billion, at a rate of 34.3% on an annual basis, while it rose 25.7% on a quarterly basis; the general index of the stock exchange rose 24.5% at the end of the second quarter on an annual basis and 10.6% on a quarterly basis, accompanied by an increase in the market value of the stock exchange to 37.2 billion dinars, or 27.3% at the end of the second quarter, on an annual basis, while it increased by 34.4% on a quarterly basis, reports Al-Qabas Arabic daily.
The Al-Qabas daily added, the credit rating of the real estate and construction sectors decreased by 0.4% at the end of the first quarter of 2021, while it rose 0.7% on an annual basis, approaching 11.2 billion dinars according to the Central Bank of Kuwait report issued at the end of the second quarter of 2021.
KFH indicated that the credit facilities granted to individuals increased close to the 18 billion dinars barrier, an increase of 2.2% at the end of the first quarter, while it was higher by 9.3% on an annual basis, with an increase in installment credit facilities by 2.9% from the first quarter.
The construction of housing units alone in the private housing sector constitute 32.7% of the credit granted, exceeding 13.3 billion dinars, an increase of 11.6% year on year.
The report pointed out that the price index in Kuwait rose to 119 points, according to the latest data of the Central Administration of Statistics, at the end of April 2021.
Therefore, the inflation rate recorded 0.3% from price levels at the end of the fourth quarter, while it reached 3.1% on an annual basis, driven by a varying increase in price levels in most components of the index, while the price levels in the housing services component did not change on an annual basis.
The report said that the cohesion of the real estate sector comes in light of the recovery in oil prices, as agreements to reduce oil production, supported by government measures and stimulus plans and the gradual opening of economic activity and global trade and transport movement, contributed to the recovery of prices recorded for West Texas crude $ 73.5, Brent crude $ 75.1, and oil Kuwaiti crude closed at $73.8 also at the end of the second quarter of 2021, rising 24.2%, 18.2% and 15.6%, respectively, on a quarterly basis higher than the unprecedented levels that oil prices have reached in the first quarter of 2020 with the onset of the Covid-19, which led to the suspension of economic life.
