Kuwait: Activity in real estate remained strong during April, as the market continued to set new records
In its latest economic brief on the monthly statistics of registered real estate contracts issued by the Ministry of Justice, excluding sales conducted through agents, National Bank of Kuwait reports that real estate sales had their strongest month ever in April. A total of 1,140 sales transaction were registered at a value of KD 316.8 million, up by 7% and 32% from previous month, respectively. The figures were 85% and 114% higher than a year before, respectively. Both the residential and apartment as well as the commercial property sectors saw strong growth of 33% and 31%, respectively. Average prices per unit sold during the month were 26% higher in the residential sector and rose 11% for apartments and commercial property.
NBK noted that the real estate market recorded historical sales during the first four months of the year. Average sales were up 71% in value and 70% in number compared to the same period a year before. Growth was higher in the residential sector with value rising by 76% and unit sales up 64% compared to 2006. Activity in apartments and commercial property also saw strong growth in value and unit sales of 64% and 107%, respectively. Meanwhile, the average price per unit sold rose 7.5% for residential properties, though it declined by 21% in the apartments and commercial property sector.
NBK reported that loans approved by the Savings and Credit Bank (SCB) rose for the second consecutive month during April, increasing by 14% in number and 11% in value. The number of loans approved for the purchase of existing homes and the construction of new homes increased by 10% and 8%, respectively. SCB approved 396 loans in April with a value of KD 12.5 million. Loans approved during the first four months of 2007 were up 5% in value and 8.8% in number compared with the same period last year. Meanwhile, the SCB disbursed KD 17.3 million in loans during April, 0.4% more than the previous month, though the year-to-date average was down by 18% compared to the previous year.