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Kuwait real estate sales drop by 70 per cent

Adversely affected by plunge in oil prices, geopolitical developments in the Middle East and Greece’s financial crisis

The number of deals in Kuwait’s real estate sector plummeted by 70 per cent in the first half of the current year, according to a report.

The value of property deals slumped by 29 per cent in the same period, says Kuwait Finance House in a report.

The local real estate market saw a relative calm after the Kuwait Public Authority for Housing Welfare was able to meet accumulated housing requests and still had an excessive supply of housing units.

According to a report published by the Kuwait News Agency (KUNA), mortgages soared by 15 per cent year-on-year during the six-month period, mainly driven by the continued decline of interest rates.

Furthermore, local banks extended housing loans worth KWD18.4 billion by the end of June, signalling an increase of 6.6 per cent year-on-year, the lowest annual growth since 2012.

The plunge in oil prices at global markets, geopolitical developments in the Middle East and Greece’s financial crisis, all left an adverse impact on Kuwait’s real estate markets in the first half of the current year.

All of the above factors led to lower liquidity in the local real estate market, as many individuals and investors started to look for better opportunities in regional and international markets, the report says.