Kuwait City (IAMINKUWAIT), Feb 5: The recent recession in the domestic sector mainly in the real estate sector has triggered the government to invest more in the sector . The purposeful investment will increase the growth in the Q1 of 2018.
The real estate sector is sure to flourish due to the upcoming projects of the Kuwaiti Government, such as the Kuwait International Airport , extending Amiri Hospital ,constructing Jaber Causeway , Al-Jaharra and Jamal Abdulnasser roads in addition to many other projects.The local real estate projects are affected by internal and external factors thus forcing the banks to keep restrictions on finance.
Other factors have also disturbed the real estate market such as the decline of proceeds from realty enterprise, capitals shifting to stock market, unsteady Oil price, geopolitical events, and increase of construction material prices .The government used to encourage bids to stimulate the markets but lately 20 auctions were delayed due to the absence of investors and auctioneers. Rents in the investment and commercial sectors have recently dropped by 10-15%.
Qais Al-Ghanim , Secretary of the Kuwait Real Estate Association says that the market has remained largely in a lack luster status , with trades not exceeding 7% of the displayed properties. Some entrepreneurs have also shifted from real estate to stock market , expecting immediate gains .
Suleiman Al-Dlaijan ,manager of a property agency ,says young citizens who make up 60% of the Kuwait population do not afford to aspire a own house . The statistics by the Public Authority For Housing Welfare shows that there are 100,000 residence applications every year .
Al- Dlaijan believes that hike of power, water bills , restrictions imposed by the Central Bank of Kuwait on credits for private housing stemmed up the high property prices.
As to trades value over the past three years , he said it amounted to KD4.4bln (USD 14.5 billion in 2014) , KD 3.2 bn , (USD 10.5 bn) in 2015 dropped in 2016 to KD 2.4 bn (USD 7.9 bn).
Director General of Athra Real Estate says that he is confident that the real estate market will flourish in the 2018.
|Kuwait gold daily market price in global currencies|
|Gold 18K||1 Gram||9.59||31.61||2177.11||-0.21%|
|Gold 21K||1 Gram||11.19||36.89||2540.34||-0.18%|
|Gold 22K||1 Gram||11.72||38.64||2660.66||-0.17%|
|Gold 24K||1 Gram||12.79||42.16||2903.57||-0.16%|