The value of real estate transactions in Kuwait increased by 15% on a quarterly basis, and 9 times its value in the second quarter of last year.
A report issued by Kuwait Finance House “KFH” said that the value of real estate transactions amounted to about 1.1 billion dinars (3. 67 billion dollars) in the second quarter of 2021, compared to trades worth 929 million (3.1 billion dollars) in the previous quarter.67 billion dollars in the second quarter of 2021, compared to trades worth 929 million (3.1 billion dollars) in the previous quarter.
According to the report, the levels and volume of demand for trades during the second quarter witnessed a remarkable increase of 19% on a quarterly basis, and reached 10 times its value on a yearly basis.
The average price per meter in the Capital Governorate rose to 1,089 dinars in private housing by the end of the second quarter of 2021 on an annual basis, reaching 2,435 dinars in investment property, and increasing in commercial property to 6,403 dinars, unchanged from the previous quarter.
In Hawalli Governorate, the average price per meter for private housing rose to 1,106 dinars, and decreased in investment property to 1,592 dinars, with a decline in commercial to 3,246 dinars. The average price rose to 652 dinars for private housing in Farwaniya Governorate, while it decreased in investment to 1.393 dinars, and in commercial rose to 2.337 dinars from the previous quarter.
Private housing strengthened its position in the first place among the sectors with its contribution rising to about 77.5% in the second quarter compared to 62.4% of transactions in the same period 2020, while the share of investment property in second place remained low to 15.2% of the value of trades against 22.3% in Q2 2020.
While the share of commercial real estate trades fell sharply to 2.9% against 13.4% of trades, craft and industrial real estate trades accounted for 2.6% of trades in Q2, and coastal strip property contributed 1.6% of trades versus 1.9% in Q2 2020.
The overall average real estate transaction value index decreased to 318 thousand dinars by 15% from the first quarter and 22% year-on-year. The total number of traded transactions rose to 2,885 in Q2, up 19% quarter-on-quarter, driven by a notable quarter-on-quarter increase in the number of transactions on private housing, investment and commercial real estate.
Private housing transactions rose to an exceptional level, recording 825 million dinars during the second quarter, up 19% from 696 million in the first quarter, more than 11 times its value in Q2 2020.
The average transaction value declined to 272 thousand dinars by 15% compared to an average of 320 thousand dinars in the first quarter by 5% annually.
The number of deals traded in private housing increased to 2.568 deals by 21% compared to 2.122 deals in the previous quarter, while rising to 10 times compared to the second quarter of 2020.
While the value of investment real estate transactions reached 165 million dinars, up 4% against 159 million dinars in the previous quarter, and up 6 times year-on-year.
The average transaction value decreased to 599 thousand dinars from the first quarter of 600 thousand dinars, down 44% year-on-year, and the number of investment real estate deals increased to 274 deals by 3%, compared to 265 deals in the first quarter, up 11 times from Q2 2020.
The value of commercial real estate transactions amounted to 18 million dinars in the second quarter, down by a significant 46% from its value of 58 million dinars in the first quarter.
The average transaction value decreased to 1.6 million dinars, down 35% quarter-on-quarter and 60% year-on-year, and the number of deals increased to 27 deals, up 13% from the previous quarter.
The number of deals increased to 27 deals, up 13% from the previous quarter.
