Kuwait’s real estate activity amounts to KWD4 billion (1 KWD = 3.3113 USD at time of publication) each year, says Sheikh Nimr al-Sabah, the Ministry of Commerce and Industry’s Assistant Undersecretary for Foreign Trade and International Organizations Affairs.
Sheikh Nimr says that this massive amount requires additional development of this key sector for the national economy, Kuwait News Agency (KUNA) reports.
According to an earlier report by the National Bank of Kuwait, the value of real estate deals in the Arab Gulf nation totalled KWD4.3bn in 2014.
The residential sector’s deals accounted for the major portion of the total value of real estate activity.
However, a number of pundits believe that the high cost of properties in Kuwait is mainly driven by a shortage in available land plots, the higher cost of construction and some legislation.
Speaking at a real estate conference, which opened on May 4th in the capital, Kuwait City, they agree that the private sector has the ability to address the housing issue in the oil-rich country once it is given the opportunity to do so.
Ahmad Baqir, the former Minister of Commerce and Industry says the government must release state-owned lands to give way to residential projects, noting that the demand on housing grows by 2.5 per cent every year.