The Kuwaiti real estate sector saw a higher amount of sales during the fourth quarter of 2018, recording their highest levels in four years.
Real estate sales increased by 23% quarter-on-quarter (91% year-on-year) to KWD 1 billion ($3.29 billion) in Q4-2018, according to a report released by the National Bank of Kuwait (NBK) on Saturday.
The main factor behind that growth was the investment apartment sector, along with an increase in property prices.
Meanwhile, the commercial sector has benefitted from higher demand helped by business-friendly reforms by the Ministry of Commerce and Industry, giving rise to better sentiment and renewed demand in this sector, the report said.
NBK’s real estate price indices – which covers land, homes, apartments, and multi-unit buildings – jumped in 2018 on the back of the growth in oil prices, employment, and the number of expatriates.
Possibly higher government [capital expenditure] and project awards in 2019 may stimulate non-oil growth and boost employment, which could, in turn, boost demand in the rental market, NBK revealed.
After the recent recession in the Kuwaiti real estate market, it is expected that the continuation of the government spending on development projects will contribute to the rise in demand in the Kuwaiti market during the first quarter of this year.