By Andy Sambidge
National Bank of Kuwait report says property deals reached $1.14bn last month
Real estate sales activity in Kuwait picked up in January, totalling KD318.1m ($1.14bn) in value, a 64 percent increase year-on-year, a National Bank of Kuwait (NBK) report has said.
The level was the third best level on record. All three sectors of real estate saw big increases, with the residential sector taking up 54 percent of total sales, state news agency KUNA reported.
NBK added that the uptick in sales should continue for the rest of 2012 albeit at a slower rate.
"Residential sector sales were KD170.3m for January, a 40 percent year-on-year climb," the report said.
The report highlighted a high number of transactions concluded last month, totalling 806, a four-year peak for the sector.
The majority of the transactions (71 percent) were for plots of land, as opposed to finished homes, NBK added.
"Residential sales should continue to do well in the near future, as it appears backed with solid demand," the report said.
"The investment sector (mainly apartments and buildings intended for rental), saw KD 127.3m in transactions for January, a little more than double the amount of last January. This was supported by a higher average transaction size, compared to 2011," it added.