World Economy

Kuwait Real Estate Market Slumps

Kuwait Real Estate Market SlumpsKuwait Real Estate Market Slumps

Heightened oil market volatility, combined with wider fiscal deficits and potential hikes in utility charges and fees, all seemed to impact the real estate market in first quarter of this year, KUNA reported. Real estate sales are still off the pace of 2014-2015, except for the commercial sector. Prices, on the other hand, appear to be holding well amid the subdued activity. Real estate market sales totaled KD 705 million ($233.6 million) by the end of the first quarter of 2016, down 18% compared to the first quarter of last year, as the market continues to correct amid growing uncertainty. March alone saw sales down by 29% year-on-year to KD 235 million. Real estate price indices posted mixed results, reflecting investor caution regarding the sector’s outlook. Activity in the residential sector was weak despite a somewhat better performance in March. The sector registered 307 transactions during the month, worth KD 97 million; activity was up by 25% compared to February.