Kuwait: Real estate market to slow down
The manager of finance and marketing at Al-Jal Real Estate Services Company,
Hamed al-Suheil, expects that the activity in the local real estate sector will continue, but not in the same high levels it saw during 2003 and 2004, according to the Kuwaiti News Agency, KUNA. What limit the activity in this sector at present is mainly the liquidity difficulties, which Suheil considers as the most important factor behind commercial activity.
Private contractors of housing projects put works on hold, according to Suheil, due to lack of liquidity, and a gradual increase in the supply of properties, which affect negatively on the prices.
This sector is also connected to the governmental loans, which do not sufficient at present for buying a house or a land plot, since they became much expensive compared to past years.
As for the commercial real estate sector, it continues to be active during the current year thanks to the high demand from private companies for offices, especially for modern ones equipped with technological infrastructure and parking lots.