By Andy Sambidge
Gulf state economist says decline in prices in last two months has been up to 40%.
The real estate sector in Kuwait will be out of its current slump by the second half of 2009, according to a leading local economist.
Adnan al-Haddad, chief executive of Group Gulf Co, said that the decline in the real estate sector ranged between 30-40 percent in the last two months.
He added that the sector had been affected by the global financial crisis, like all sectors of the economy, reported Kuwait News Agency (KUNA).
He said the Kuwaiti real estate market had also suffered from inflation, but added that the time was now right for the market to begin to recover.
Haddad said the market was bound to regain its strength and vitality, once the signs of recovery in oil prices and the stock market and the rebound from the global economy start, possibly in the second half of the year 2009.
He noted that real estate companies listed on the Kuwait Stock Exchange (KSE) remained among those whose shares are being actively traded, which suggested that the real estate sector continues to enjoy the confidence of traders and investors, he said.
He said signs of easing in the real estate market started with the courts exempting Islamic banks from the constrictions of Law 8 and 9, thus enabling them to resume to provide funding for the residential real estate market again.
Haddad added that some companies had suffered from a deadlock in the marketing of their products and were under pressure from banks and financial institutions, which provided them with funding.