08 August 2010
KUWAIT -- A report said Sunday there were several factors contributing to flourishing real estate market during the second quarter this year in Kuwait.
Kuwait Finance House's (KFH) report about local real estate market said real estate investment has always been a traditional investment method for Kuwaiti investors.
It said real estate sector in Kuwait has been witnessing positive phases and low risks.
The report said stability of oil prices, high income, low inflation and low prices of construction materials, and attempts by real estate companies to address consequences of global financial crisis have contributed to backing the real estate sector in Kuwait.
KFH said the government's projected spending of KD 37 billion during the next four years within the development plan has also boosted real estate, coupled with housing facilities offered by banks.
Real estate deals jumped by 26 percent in the second quarter, said the report, while bi-annual value of real estate transactions reached around KD 1.19 billion.
Trading in private housing jumped by 24.27 percent or KD 374.7 million in the second quarter, with prices stable in Asima, Hawally, Farwaniya, Al-Jahra and Al-Ahmadi governorates.
The investment real estate witnessed flurry of transactions with KD 245 million, while the commercial real estate suffered from surplus in supply amidst low demand. The report attributed this to fact that leasers sought other markets or financial problems amongst many companies.
The real estate sector and related sectors have been contributing bit over seven percent to the gross domestic product (GDP) over the past decades.
The KFH report noted growing demand on the development of housing sector with population reaching 3.31 million in 2010, and is expected to grow by two percent annually until 2015.
May was the highest in terms of transactions with 41.6 percent of total deals in the second quarter, or KD 156.1 million, it added.
KUWAIT -- A report said Sunday there were several factors contributing to flourishing real estate market during the second quarter this year in Kuwait.
Kuwait Finance House's (KFH) report about local real estate market said real estate investment has always been a traditional investment method for Kuwaiti investors.
It said real estate sector in Kuwait has been witnessing positive phases and low risks.
The report said stability of oil prices, high income, low inflation and low prices of construction materials, and attempts by real estate companies to address consequences of global financial crisis have contributed to backing the real estate sector in Kuwait.
KFH said the government's projected spending of KD 37 billion during the next four years within the development plan has also boosted real estate, coupled with housing facilities offered by banks.
Real estate deals jumped by 26 percent in the second quarter, said the report, while bi-annual value of real estate transactions reached around KD 1.19 billion.
Trading in private housing jumped by 24.27 percent or KD 374.7 million in the second quarter, with prices stable in Asima, Hawally, Farwaniya, Al-Jahra and Al-Ahmadi governorates.
The investment real estate witnessed flurry of transactions with KD 245 million, while the commercial real estate suffered from surplus in supply amidst low demand. The report attributed this to fact that leasers sought other markets or financial problems amongst many companies.
The real estate sector and related sectors have been contributing bit over seven percent to the gross domestic product (GDP) over the past decades.
The KFH report noted growing demand on the development of housing sector with population reaching 3.31 million in 2010, and is expected to grow by two percent annually until 2015.
May was the highest in terms of transactions with 41.6 percent of total deals in the second quarter, or KD 156.1 million, it added.
© KUNA (Kuwait News Agency) 2010
