KUWAIT: Kuwait's real estate market witnessed a "noticeable rebound" during the third quarter of this year, particularly in the investment and residential sectors as well as a rise in demand for sea chalets, recovering from the ramifications of the coronavirus pandemic, experts said. However, commercial and industrial sectors as well as farmlands are still suffering from temporarily stagnation mainly due to high prices of lease contracts and electricity as well as lack of some services, they said.
The experts, in statements to KUNA, expected the real estate market to recover by the beginning of next year. This might be driven by economic incentives to be discussed by the National Assembly during its current session, which will positively impact economic sectors, including real estate. Ahmad Al-Duwaihees, Secretary General of the Real Estate Union, said the residential sector witnessed a rise in supply, but sales were minimal.
Duwaihees expected prices to recover in 2022 following the introduction of economic incentives which would support the investment sector that was devastated by the pandemic, as operation costs were higher than occupancy. He added prices in the commercial sector were "inflated and overrated in most areas".
Abdulaziz Al-Dughaishem of Al-Dughaishem Real Estate Agency noted that supply outstripped demand for sea chalets in Khairan. He said the investment sector started recovering with a rise in demand, which showed that the economic cycle has returned to normal. Emad Haidar, Deputy Chairman of the Brokers Union, confirmed investment and commercial sectors are recovering from the impact of COVID-19.
He expected the local market to witness a remarkable improvement with the full reopening of Kuwait International Airport, which will boost demand for private houses in Hawally, Salmiya and Farwaniya. Kuwait Finance House said in a recent report that real estate transactions in the second quarter of 2021 amounted to KD 1.1 billion ($3.6 billion), 15 percent higher than the previous quarter, which registered KD 929 million ($2.9 billion). - KUNA