The report issued by Kuwait Fund House (KFH) described the real estate market activity in Kuwait during the first half of this year as calm. This goes back to the growth of supply in properties market as many residential and investment units were integrated in the market.
The number of real estate transactions fell by 70% during the first half compared to the same period of the last year which had a significant reflection on deals value which dropped also by 29%. However, properties prices average rose by 2% to reach an unprecedented echelon in Kuwait.
In another respect, the value of delivered real estate loans from the banking sector to the real estate sector reached 18.6 million dinars growing by 6.6% compared to last year. Real estate loans constitute about 58% of credit loans in Kuwait banking system.
The report mentioned that oil prices plunge has started to influence the real estate activity in Kuwait in different ways. The effect was remarkable on construction sector while it remained limited on real estate sector due to the powerful demand.