The real estate sales in Kuwait registered a 16 per cent year-on-year (y/y) growth to hit KD372 million ($1.27 billion) in September after experiencing slower activity during the summer months, said a report.
The real estate sales in Kuwait recovered in September after experiencing slower activity during the summer months with a 16 per cent year-on-year (y/y) growth to hit KD372 million ($1.27 billion), said a report.
The growth was supported by a strong performance in the investment sector which recovered strongly from the slower summer months, stated the National Bank of Kuwait (NBK) in its report.
By contrast, the residential sector remained relatively soft despite a pick-up in September. The sales in the residential sector fell by 23 per cent y/y to KD147 million ($504 million) during the month.
NBK pointed out that the number of transactions was down eight per cent. The underperformance of the sector in previous months could be attributed to the small number of available properties coming online, it added.
Areawise, the residential activity was heaviest in the Ahmadi governorate, which accounted for 63 per cent of all residential transactions during September.
The Mubarak Al-Kabeer and Hawalli governorates came in second and third, accounting for 15 and seven per cent of all transactions, respectively.
In the residential sector, 73 per cent of all transactions involved the purchase and sale of land or vacant plots, said the NBK report.
Meanwhile, the investment sector continued to see strong growth in sales, as the sector offered relatively attractive returns. Sales soared to KD207 million ($709 million) in September, up 73 per cent over last year.
A total of 147 transactions took place during the month, an increase of 11 per cent y/y. The average transaction size also increased, to KD 1.4 million ($4.8 million), stated NBK.
"As we enter the fourth quarter of 2014, the Kuwaiti real estate sector looks likely to end another year on a positive note," it added.
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