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Kuwait real estate market resumes growth

Kuwait Finance House (KFH) report says there has been a significant growth in the value of real estate deals

Real estate deals in Kuwait resumed their growth on a monthly basis during March 2015, after a three-month period of weak purchases and sales.

Kuwait Finance House (KFH)’s report issued on Friday says real estate deals value registered KWD361 million, a significant growth of 42 per cent. This represents KWD107m, up from KWD254m last February because of national celebration holidays.

According to the report, the average daily real estate transaction in March was approximately KWD16m. The bulk of the value of transactions came from home sales and purchases. Real estate deals fell by 26 per cent during the month of February and around KWD87m from the previous month.

The report points out the actual number of trading days during March was 23 days, with an average daily trading value of KWD16m, while they reached 18 days during the month of February 2015, with trading value up to KWD14m.

The highest value of deals in the month of March came from home sales and purchases, accounting for nearly 55 per cent of the total value of the deals, compared with 52 per cent in February.

Despite the increase in value of deals by 42 per cent, with a significant increase in the number exceeding 78 per cent, their value declined by 20 per cent from the month of February, amounting to a little more than KWD460,000 for a single transaction, adds the report, which goes on to disclose that the total number of real estate deals reached 784 in March (712 contract deals and 72 agency deals), an increase of approximately 344 transactions, compared with 440 transactions in February (393 contract deals and 47 agency deals).

The governorate of Al-Ahmadi accounted for 44 per cent of the total number of deals, followed by that of Mubarak Al-Kabir (23 per cent), then Hawalli (16 per cent).