Kuwait sees surge in commercial property deals

  • Share via facebook
  • Tweet this
  • Bookmark and Share
Sales of residential properties rose 40.9 percent in the second quarter, KFH said

Sales of residential properties rose 40.9 percent in the second quarter, KFH said

Kuwait's real estate market grew 43 percent in the second quarter of 2011, with commercial property deals surging 172 percent, research by Kuwait Finance House has found.

Sales of residential properties rose 40.9 percent in the second quarter, but were outpaced by commercial real estate which saw a 172 percent rise in sales, the report said.

The value of transactions reached KD1.03bn for the quarter, up from KD721m the previous quarter. Increased activity helped push prices up 3.1 percent to an average of KD981 ($3,602) per sq m, the report said.

Research from real estate firm Coldwell Banker Kuwait last month said the Gulf state’s property market was showing signs of recovery, aided by accelerated investment by the private sector.

However, questions remain over the strength of the Gulf state’s residential recovery, which has been hamstrung by an underserved home loans market.

Gulf Bank said in July it had lobbied for an overhaul of mortgage regulations, which currently prohibit non-Islamic lenders from offering home financing packages to residents.

“Mortgage loans are something that is a big problem here in Kuwait,” said Aly Mahmoud Shalaby, head of consumer banking at Gulf Bank, Kuwait’s second largest lender by market value. “Conventional banks are upset… we’ve [put] pressure on the government.”

Related:
Topics
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Do celebrity branded projects ever work?

Do celebrity branded projects ever work?

The long list of celebrity-endorsed real estate developments...

1
Is this the end of the Gulf’s Indian cash dash?

Is this the end of the Gulf’s Indian cash dash?

From currency woes to taxation loopholes closing and a clampdown...

2
Mall talk

Mall talk

Plans for Dubai’s Mall of the World have made headlines all over...

1
Most Discussed
  • 24
    World's most pierced man refused entry to the UAE

    Tolerance has its limits everywhere including Dubai and those who considered Dubai a lawless circus were held accountable...so thank you Dubai authorities... more

    Thursday, 21 August 2014 10:51 PM - Khalil
  • 23
    Baby NOT on board?

    Some of you cry babies need to get your own personal apartments on the plane ! You cry more then the babies I have seen in my travels. LOL more

    Thursday, 28 August 2014 9:10 AM - Jim
  • 21
    Israel “must be punished” over Gaza, says Dubai police chief

    This high moral ground that Mick is talking abt sound very familiar. May I remind Mick that the US & its British ally alone killed over 1 million innocent... more

    Thursday, 7 August 2014 4:12 PM - Mathew