Kuwait’s total real estate sales increased in 2014 by 111.2 percent, says a report from KAMCO.
Real estate sales almost doubled in 2014 to reach KD 4.27 billion compared to KD 2.02 billion recorded in 2010, KAMCO says in its latest research titled “Kuwait Real Estate Sector”.
The real estate sector’s total annual sales have seen a significant increase since 2010, after being severely hit by the financial crisis in 2008 and 2009, adds KAMCO.
Due to higher real estate prices during the last 5 years the average transaction size reached KD 0.553 million in 2014 compared to KD 0.298 million in 2010 recording an increase of 85.3 per cent over the same period.
The highest average transactions size registered by the commercial property segment amounted to KD 5.7 million compared to an average of KD 3.18 million seen in 2010, reveals the report.
The residential segment of the real estate market in Kuwait primarily consists of properties under the government housing program known as the Public Authority for Housing Welfare (PAHW), thereby, making the residential segment the largest and the most important in this sector, it adds.
Residential property sales grew at a 4-year CAGR of 14.2 per cent to reach KD 1.87 billion in 2014 compared to KD 1.1 billion in 2010.
Total sales figure for the commercial properties segment grew at a 4-year CAGR of 25.4 per cent to reach KD 566 million in 2014 compared to KD 229 million in 2010.
More recently, the segment has seen more focus resulting in an increasing number of commercial buildings and new malls, hotels and resorts, the report says.