Real estate sales in Kuwait surge 35 percent, NBK report

Kuwait’s real estate sector could be headed towards a recovery this year, after property sales in the cash-rich Gulf state surged 35 percent in 2011, a report by the National Bank of Kuwait (NBK) has said.

The total value of purchases last year reached KD2.7bn, with a renewed interest among investors, according to the bank’s latest GCC Economic Outlook report.

“The real estate sector recovered further in 2011, with special sustained interest in the investment sector, i.e. apartment buildings that generate income,” said the report.

“For the year, the total value of real estate sales was up 35 percent in 2011 over 2010. The leading segment – the investment sector – was up 53 percent.

Loans to real estate also showed some improvement, the report said, a further sign that the property market was looking up in the year ahead.

“Outside of household finance, loans to real estate showed some improvement and grew a decent 4.8 percent year on year, probably reflecting the pickup in investment real estate sales throughout 2011.”