Real estate sales in October reached KWD362 million, up 44% year-on-year (y/y) , said a report compiled by NBK MENA research unit.
Activity during the month was supported by strong performances in the investment and commercial sectors. Despite only three weeks’ of business activity in the month due to the Eid Al-Adha break, October looks to have been a very good month for the real estate market , added the report.
Sales in the residential sector totalled KWD138 million during the month. This was a decline of 12% y/y, however. The number of transactions was also down, by 8% y/y. The average value of residential transactions has remained relatively steady for a number of months now.
Residential activity was heaviest in the Ahmadi governorate, which accounted for 57% of all residential transactions during October. More specifically, plots in Sabah Al-Ahmed Sea City accounted for almost half of all transactions in the residential sector, with the release of plots in phase-four of the project contributing to the flurry of activity. The average land transaction in the area is under KWD300,000, which has brought down the average transaction value of plots overall in October. Adjusting for the Sabah Al-Ahmed Sea City effect, the trend in transaction values remains upward. Meanwhile, the Mubarak Al-Kabeer and Hawalli governorates accounted for 17% and 10% of all transactions, respectively. In the residential sector, 69% of all transactions involved the purchase and sale of land or vacant plots.
Meanwhile, in the investment sector, sales of KWD144 million were recorded in October, an increase of 136% y/y. While this is more than double last year’s value, the increase was largely due to a base effect, since sales in October 2013 were low by historical standards. In terms of the number of transactions, 147 were recorded during the month, an increase of 46% y/y. The average transaction size also increased, to KWD1.1 million. For the 10-month of the year, the sector’s sales are up 50% from last year, to KWD1.57 billion , noted the report.
In the investment sector, apartments accounted for 45% of all transactions. Whole buildings followed, comprising 26% of all transactions. The Ahmadi governorate once again witnessed the bulk of activity with 30% of all transactions. Farwaniya followed with 24%. The largest transaction, however, involved the sale of a plot of land for KWD9 million in Sharq. Transactions involving vacant plots accounted for 24%, with the majority (25 plots) being sold in the Sabah Al-Salem Area.
In the volatile commercial sector, sales more than doubled y/y to reach KWD80 million. A total of 11 transactions were recorded during the month; the two largest were a building in Kuwait City that sold for KWD25.7 million and a commercial complex in Al-Jahra that fetched KWD16 million.
October also saw two coastal line transactions: a home in Mubarak Al-Kabeer that was bought for KWD3.4 million and a plot in Ahmadi that was sold for KWD3 million. Coastal line transactions are unique as they are independently regulated and can be either commercial or residential.
The Kuwait Credit Bank (KCB) approved 307 housing loans worth approximately KWD18.7 million in October, a drop of 52% y/y. Again, this was largely due to a base and seasonal effect. Disbursed loans totalled KWD16 million, an increase of 13% y/y.
Activity during the month was supported by strong performances in the investment and commercial sectors. Despite only three weeks’ of business activity in the month due to the Eid Al-Adha break, October looks to have been a very good month for the real estate market , added the report.
Sales in the residential sector totalled KWD138 million during the month. This was a decline of 12% y/y, however. The number of transactions was also down, by 8% y/y. The average value of residential transactions has remained relatively steady for a number of months now.
Residential activity was heaviest in the Ahmadi governorate, which accounted for 57% of all residential transactions during October. More specifically, plots in Sabah Al-Ahmed Sea City accounted for almost half of all transactions in the residential sector, with the release of plots in phase-four of the project contributing to the flurry of activity. The average land transaction in the area is under KWD300,000, which has brought down the average transaction value of plots overall in October. Adjusting for the Sabah Al-Ahmed Sea City effect, the trend in transaction values remains upward. Meanwhile, the Mubarak Al-Kabeer and Hawalli governorates accounted for 17% and 10% of all transactions, respectively. In the residential sector, 69% of all transactions involved the purchase and sale of land or vacant plots.
Meanwhile, in the investment sector, sales of KWD144 million were recorded in October, an increase of 136% y/y. While this is more than double last year’s value, the increase was largely due to a base effect, since sales in October 2013 were low by historical standards. In terms of the number of transactions, 147 were recorded during the month, an increase of 46% y/y. The average transaction size also increased, to KWD1.1 million. For the 10-month of the year, the sector’s sales are up 50% from last year, to KWD1.57 billion , noted the report.
In the investment sector, apartments accounted for 45% of all transactions. Whole buildings followed, comprising 26% of all transactions. The Ahmadi governorate once again witnessed the bulk of activity with 30% of all transactions. Farwaniya followed with 24%. The largest transaction, however, involved the sale of a plot of land for KWD9 million in Sharq. Transactions involving vacant plots accounted for 24%, with the majority (25 plots) being sold in the Sabah Al-Salem Area.
In the volatile commercial sector, sales more than doubled y/y to reach KWD80 million. A total of 11 transactions were recorded during the month; the two largest were a building in Kuwait City that sold for KWD25.7 million and a commercial complex in Al-Jahra that fetched KWD16 million.
October also saw two coastal line transactions: a home in Mubarak Al-Kabeer that was bought for KWD3.4 million and a plot in Ahmadi that was sold for KWD3 million. Coastal line transactions are unique as they are independently regulated and can be either commercial or residential.
The Kuwait Credit Bank (KCB) approved 307 housing loans worth approximately KWD18.7 million in October, a drop of 52% y/y. Again, this was largely due to a base and seasonal effect. Disbursed loans totalled KWD16 million, an increase of 13% y/y.
Source:
Mubasher
