KUWAIT CITY, Sept 3: Real estate expert Ali Al-Saffar reported a 22 percent decrease in the value of real estate transactions in Kuwait in August, and a 10 percent decline in the number of transactions compared to July. In an interview with Kuwait TV, Al-Saffar explained that the total value of real estate transactions in August was approximately KD 296 million for 407 transactions.

Residential real estate had the largest share of transactions with a total of 281 transactions worth KD 130 million. This was followed by investment real estate with 90 transactions worth KD 119 million, and then commercial real estate with 34 transactions worth KD 42 million. There was an eight percent increase in the value of real estate transactions in the investment sector for August, reaching KD 105 million, compared to July.

On the other hand, the residential sector experienced a slight decline of four percent, with transactions valued at KD 135 million in July. Also, commercial real estate transactions decreased by 35 percent, with the total value reaching KD 65 million in July. Regarding the real estate transactions of August 2023, Al- Saffar revealed a 5.6 percent decrease in activity. He explained that the total value of real estate transactions in the first eight months of 2024 was KD 2.277 billion, compared to KD 2.7 billion for the same period last year.

This indicates a monthly average of approximately KD 284 million. If the current trading trends continue through the end of the year, there could be a significant increase in the number of transactions, potentially reaching KD 3.4 million, along with a price peak exceeding 25 percent. A clearer picture will emerge in the coming months, as it is only the second month of the third quarter.

The situation is expected to shift notably in the final four months of the year (September, October, November, and December), particularly with the Federal Reserve and US bank expecting significant decreases in bank interest rates during September. There is also an unexpected increase in both the number of trades and deals, despite the current rise in interest rates and the restrictive bank financing conditions. Despite these challenges, buyers are accepting the current prices, leading to an unforeseen rise in trading value.

By Marwa Al-Bahrawi
Al-Seyassah/Arab Times Staff