Mubasher TV
Contact Us Advertising   العربية

Real estate sales fall in July as market correction continues

Real estate sales fall in July as market correction continues
Photo Credit: Arabianeye-Reuters

The Kuwaiti real estate sector’s fall in sales resumed in July, following a slight recovery in June, driven by what seems to be a correction movement, according to a report issued by the National Bank of Kuwait (NBK).

Sales in the residential, investment, and commercial sectors, which lead the real estate market, totalled KWD 247 million, down 7.8% year-on-year and 23% for the first seven months of 2015 as compared to the same period of 2014.

Sales in the residential sector retreated to KWD 98 million in July, below the KWD 100 million mark for the first time in almost three years, and down 28% on a yearly basis.

The investment sector also declined in July, as total sales stood at KWD 120 million, a 9% annual drop. However, the number of transactions increased by 16% compared to 2014.

Meanwhile, the commercial sector reported saw its sales realizing KWD 31 million in proceeds, as it recorded nine transactions with the highest being for two complexes in Salmiya worth KD 7 million each.

The report added that sales of the commercial sector, known for its volatile performance, remained down at 19% for the first seven months of 2015 as compared to the same period of the previous year.

Kuwait Credit Bank approved KWD 13.7 million in loans in July. The value of approved loans during the month was down 20% y/y, while disbursed loans were up by 41% y/y totalling KWD 14.5 million.