Kuwait’s real estate peaks ahead of Assembly session

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KUWAIT CITY, Nov 23: In the lead-up to the National Assembly session slated for next Tuesday, where the law “Regulating Real Estate Agency and Combating Vacant Lands” is set for a second deliberation and potential imposition of additional controls, Kuwait’s real estate market witnessed a significant surge described as “historical trading.” The total value of real estate contracts and agencies reached approximately 3.60 billion dinars during the past week, a notable increase from the previous week’s 36.272 million dinars. The uptick in trading was notably supported by record-breaking deals in Al-Ahmadi Governorate, particularly in the Sabah Al-Ahmad Marine region across commercial, investment, and private sectors.

Contracts
Statistics from the Department of Real Estate Registration and Documentation in the Ministry of Justice revealed that between November 12 and 16 of this year, a total of 4,720 contracts were traded across the six governorates, amounting to 3.59 billion dinars. Additionally, the value of real estate agencies stood at about 400 thousand dinars, involving a single deal in the Capital Governorate. The week saw the registration of 3,523 private real estate contracts valued at 2.67 billion dinars, 395 investment properties totaling 295.32 million dinars, 75 industrial properties amounting to 57.47 million dinars, and 735 commercial properties with a combined worth of 568.48 million dinars.

Notably, there were no recorded transactions for craft real estate, coastal strips, showrooms, or warehouses. Sources within the real estate sector attributed the surge in transaction volume to the efforts of several companies and real estate portfolios aiming to circumvent the eligibility for loan renewals obtained in 2018 when interest rates were considerably lower (around 3 percent).

With current rates soaring to approximately 7 percent, companies sought large deals to avoid or mitigate the financial burdens associated with loan maturity renewals. These sources anticipate that the upcoming year may witness banks auctioning several properties due to a confluence of factors, including policy changes affecting housing structures and the rise in vacant apartments within the investment sector, creating significant pressure on the real estate sector.

By Mahmoud Shendi
Al-Seyassah/Arab Times Staff

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