The Kuwaiti property market is expected to recover in the fourth quarter of 2019 after stagnation in the summer; Developers affirm that realty remains a safe investment for many Kuwaiti entrepreneurs.
The property investment sector is unsteady and is forecast to remain so until early 2020. Meanwhile, the housing sector is witnessing growing demand in internal districts, while ‘small traders’ are lured to the regions far from the city center.
There is an increasing demand in districts such as Al-Shuwaikh and AlRai. Director-General of Athraa Raal-Estate Company Maitham Al-Shakhs said ‘housing plots’ rates rose in districts close to Kuwait City. Moreover, the industrial sector continues to witness mounting demand.
Part of the domestic liquidity shifted to the property sector in Q3 2019 and some of the ‘small investors’ were lured by banking deposits for steady, appetite-whetting proceeds.
Manager of Al-Dlaijan real-estate company, Suleiman Al-Dlaijan, said the local market was negatively affected with regional ripples in Q3, predicting that the trades by the year-end would hit KD3.6 billion (US$12.2 billion).
A report by Kuwait Finance House said that property trades exceeded KD one billion (USD 3.3 billion) in Q2, climbing by 17% as compared to the previous quarter, with an annual hike in the range of 18%.