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Tue 8 Nov 2016 02:13 PM

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Kuwaiti property sales slip 27% in Q3

Slow activity is in line with increased utility prices and pressure on the government budget

Kuwaiti property sales slip 27% in Q3
(Yasser Al-Zayyat/AFP/Getty Images)

Real estate sales in Kuwait have dropped 27 percent in the third quarter of 2016 to $5.58 billion (KD1.7 billion) in line with slower activity in the sector caused by increased utility prices and pressure on the government budget, according to a report by local lender National Bank of Kuwait (NBK).

The number of transactions also fell by 24 percent year on year.

The residential sector marked its lowest quarter of sales since the third quarter of 2009. Its transactions fell 20 percent year on year with just 568 registered transactions during the period and sales also plunged 27 percent to $620 million.

September sales alone declined 35 percent to $176 million, with the slowdown being helped by the long Eid Al Adha holidays.

National Bank of Kuwait said residential real estate prices appeared to stabilise further in September in the Gulf state, with its residential home price index having declined 13 percent year on year following a downward trend that has taken place since the start of 2015.

However, the lender’s residential land price index revealed a 1.1 percent increase this September, leaving the bank positive about a recovery path.

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