Kuwait real estate market slows in June - NBK

Report says total value of transactions slumps by 30% compared to previous month.
Kuwait real estate market slows in June - NBK
PROPERTY DECLINES: Kuwaits real estate market slowed in June, according to a report by NBK. (Getty Images)
By Andy Sambidge
Tue 27 Jul 2010 07:42 AM

Kuwait's real estate market saw a marginal slowdown in June but sales still exceeded the monthly average seen previously, a new report by the National Bank of Kuwait has said.

Despite the slowdown last month, 708 deals were reported compared to the monthly rate of 608 transactions seen in 2003-2008, the report, cited by KUNA News Agency, added.

However, the total value of property sales fell by 30 percent to KD175m in June compared to the previous month.

NBK's report said that the housing sector reported a total of 510 transactions in June, down 19 percent on May.

The number of deals in the investment sector fell by nine percent to 196 transactions while sales value slightly improved to KD70m.

On commercial property, the report said activity was minimal in June.

It added that slow borrowing had led to a drop in loans for buying houses and building new facilities, with the number of loans declining to 134 against 447 in late 2008.

Loans allocated for commercial expansion and renovation also dipped by 24 percent to 137.

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