KUWAIT: The first ten days of July coincided with the Eid Al-Fitr holidays. Accordingly, most investors were busy with their holidays, the matter which has caused the decline in real estate sales value to continue in July. Sales value declined by 24 percent as at the end of July compared to the preceding month. This decline comes on the back of the major decline in all real estate sectors, mainly the commercial sector. Handcraft real estate sales value witnessed a slight increase.
Average real estate value declined in July compared to the preceding month. Average real estate value declined in all real estate sectors except the handcraft sector compared to June. Annual performance comparison of average real estate value shows that the performance has declined in all sectors except the commercial real estate sector which has witnessed an increase in the single real estate value.
Private residence sales vale witnessed a decline by 30 percent in July compared to its value in the preceding month. Average real estate transaction value declined by 4 percent. Investment real estate sale value declined by 18 percent in July, thus causing average investment real estate value to decline by 7 percent in July. Commercial real estate sales declined in July by 32 percent. Accordingly, commercial real estate average value declined by 32 percent in July. One of the main commercial real estate sales transactions was the sale of a commercial building in Hawally area for KD 6 million and another for KD 4.7 million in addition to a third commercial building for KD 4 Million in the same area.
Residential sector sales declined on annual basis by 34 percent while average transaction value declined by 16 percent compared to July last year. Investment real estates are continuing their annual decline, thus recording a decline by 48 percent. Average transaction value of investment real estate declined by 25.1 percent compared to July last year. The value of commercial sector sales declined by 15 percent on monthly basis. Average transaction value increased significantly by 18 percent.
Gross real estate sales
Real estate sales value continued its decline since the end of last year on monthly basis except in some months this year. The decline reached 24 percent in July or KD 48 million. This average exceeds the double decline witnessed in July. The value in July reached its lowest level in more than 3 years KD 156 million. This may be attributed to the decline in the number of trading days, thus resulting into a major annual decline by 41 percent for the second time respectively compared to the same period last year. Annual decline in July took the leading position compared to the month performance in 5 years.
Average daily real estate sales declined along with the decline in the number of days to reach 18 days due to Eid holidays in July. Working hours were also minimized during the preceding month. Daily trading value reached its lowest level in 2 years KD 8.7 million per day i.e. a decline by 7 percent compared to average daily trading in the preceding month. The annual decline reached 34 percent in July. In general, daily sale ratio is still declining since the last two years.
Distribution of sales
Real estate sales (contracts) reached KD 150.7 million in July i.e. a decline by 22 percent or KD 43 million compared to the preceding month. This monthly decline is the highest this year. As a result annual decline increased for the last two years, thus marking a major annual decline 41 percent compared to same month transactions last year. This decline is attributed mainly to Eid holidays which has fallen in the month of July.
Real estate sales (Agencies)reached KD 5.5 million in July i.e. less than half the value in the preceding month. It is also less by 24 percent compared to the value in July last year.
Private residence real estate sales share in real estate sales reached 42.9 percent in July compared to a larger share 47 percent in the preceding month. However, private residence sector is still taking the leading position among other sectors.
Investment real estate share increased for the second month respectively to reach 40 percent of sales in July compared to 37 percent in June. Despite this increase investment real estates are still occupying the second position among real estate sectors.
Commercial real estates' share declined for the third time respectively in July to represent 13 percent of real estate sales compared to 14.7 percent in June. Handcraft and warehouses real estate sector share in real estate transactions reached 4 percent in July, thus marking a remarkable increase compared to the preceding month where handcraft and warehousing real estates and coastal strip real estate have jointly formed less than 0.5 percent in June. The incoming information did not contain any transactions for the coastal strip in July.
Average real estate value reached KD 497 thousand in July compared to KD 510 thousand in June, thus marking a decline by 2 percent or KD 12 thousand compared to the preceding month. This decline comes on the back of the decline in the value of real estate transactions value, thus resulting into a decline in the single real estate value by 22 percent or KD 137 thousand compared to July last year.
The decline in total real estate transactions in July reached an unprecedented level due to the decline in the number of trading days. Real estate transactions number reached 314 transactions (296 contracts and 18 agencies), thus marking a decline by 21.7 percent or 87 transactions compared to 401 transactions in June (373 contracts and 28 agencies). Transactions number in July this year is much lower than the transactions number last year by 24 percent. Average daily transactions in July reached 17 transactions i.e. a decline by 4 percent compared to the preceding month and a decline by 16 percent compared to last year.
Distribution of real estate sales in Kuwait governorates
The value of real estate transactions registered and consolidated on weekly basis in Hawally governorate reached KD 53.2 million in July or 36 percent of the sales compared to 38 percent of sales value in the preceding month. Ahmadi governorate comes second with KD 35 million or 21 percent of the value of sales in July covering transactions forming 22 percent of the number of transactions. Transactions value represented 28.6 percent from the value of sales in the preceding month.
Mubarak Al-Kabeer governorate took the third position in sales value as sales have increased to reach KD 26.5 million or 18 percent from the value of weekly sales covering transactions representing 23 percent of the real estate transactions in July. Sales value in the governorate formed 8 percent of the value of sales in all governorates in June.
Capital governorate cam fourth with a decline in the value of real estate sales in July to reach KD 17 million or 11 percent of the value of sales which are consolidated on weekly basis. This value covers a number of transactions representing 13 percent of the number of real estate transactions in July. Meanwhile, sales value in the governorate in July formed 14 percent of the value of sales of all governorates.
Farwaniya governorate witnessed an increase in real estate sales value to reach KD 15.4 million ie 10 percent from the value of sales covering a number of transactions which forms 9 percent of the value of real estate sales in July. The value of sales in the governorate represents 7 percent of real estate sales in June.
The value of sales in Jahra governorate reached KD 5.7 million representing 4 percent of the value of sales which are consolidated on weekly basis in July. This value covers 7 percent of transactions carried out during the month compared to 4 percent of all governorate sales in June.
Private residence sales value
Private residence sales value reached KD 67 million in July compared to KD 96.2 million in June, thus recording the second lowest level during the year. The value declined by 30 percent or KD 29.2 million on monthly basis compared to a less decline ratio by 22 percent in June. Annual decline ratios are still increasing. Private residence real estate sales have declined in July on annual basis by 34 percent compared to a decline by 24 percent last year as sales value reached KD 102 million in July last year.
This decline in the value of private residence sales comes on the back of the monthly decline in the value of contract sales by 29 percent where value reached KD 63 million compared to an increase by 88.2 percent in the preceding month. The decline is also reflected in the decline in the value of private residence sales (agencies) in July to reach KD 4 million ie half the value of sales in the preceding month. The value of sales (agencies) declined significantly in July by 41 percent compared to sales in the same month last year.
Average private residence sale value
Average private residence sales value reached KD 317.7 thousand in July ie a decline by 4 percent or KD 12 thousand compared to KD 330 thousand in June. Accordingly, performance has improved following the higher decline recorded last month. Average real estate value ratios are still fluctuating. However, real estate value levels are increasing. Annual comparison shows that average real estate value has declined significantly by 16 percent. This type of real estates has recorded significant increase by 23 percent on annual basis as real estate value reached KD 379 thousand in June last year.
Private residence transactions declined in July by 27.7 percent compared to preceding month transactions thus recording 211 transactions (196 contracts and 15 agencies) in July compared to 292 transactions in June. The performance in July follows a monthly decline by 2.3 percent in the number of transactions in the preceding month. The number of transactions this year has declined by 22 percent compared to the same month last year. It seems that the number of transactions is taking the declining trend.
Distribution of private residence sales in governorates
Sales value consolidated on weekly basis at Mubarak Al-Kabeer governorate reached KD 15.8 million, thus placing the governorate in the first position. The governorate dominates 25 percent of the value of sales consolidated on weekly basis in July compared to 18 percent of the value of private residence sales in June. The value of sales was mainly recorded in Masayel area KD 5.9 million followed by Funaitees by 3.1 million and Abu-Fatira by KD 3 million in July.
Sales value in Hawally governorate recorded KD 12.9 million which represents 24 percent of the value of sales consolidated in July compared to 39 percent of the value of private residence sales in the preceding month. Sales value was mainly concentrated in Zahra area which recorded KD 2.4 million followed by Salaam area with KD 2.2 million, Bayan KD 2.1 million and Jabriya KD 1.6 million.
Sales value in Capital Governorate reached KD 12 million representing 20 percent of the value of all governorates sales compared to a share by 9 percent in the preceding month. Sales value was mainly focused in Shuwaikh residential area KD 3.9 million followed by Surra area KD 2.3 million.
Private residence sales value in Ahmadi Governorate reached KD 10 million ie 16 percent of private residence sales value in July compared to 25 percent in June. Sales value was mainly focused in Sabah Al-Ahmed marine area by KD 4.3 million and Mangaf area by KD 1.7 million.
Investment real estate sales value
Investment real estate sales reached KD 63 million in July i.e. a decline by 17.9 percent or KD 13.6 Million compared to preceding month sales where value reached KD 76 million. Sales value is still fluctuating. This fluctuation comes after the significant increase in value by 12 percent in June. Despite the major decline in July yet the same month last year recorded a higher decline. Annual comparison shows that investment sales declined significantly by 48 percent compared to July last year. This ratio exceeds the annual decline in the same month last year.
Investment real estate sales value (contracts) declined to reach KD 61 million ie a decline by 17 percent or KD 12 million compared to KD 73 million in June as it increased significantly by 15 percent in June. Sales value (contracts) in July represents half the value recorded in the same month last year.
Investment real estate sales (agencies) are still recording limited levels in July, thus reaching KD 1.4 million. This value represents half the sales value recorded in the preceding month. Meanwhile, the value in July this year is much higher than the value recorded in the same month last year and which did not exceed KD 200 thousand.
Average investment real estate transaction value
Average investment real estate transaction value reached KD 703 Thousand in July i.e. a decline by 7 percent or KD 51 thousand compared to KD 754 thousand in June. Average investment real estate value is declining since its high levels last year. Real estate value reached 84 percent in June. Real estate value declined in July by 25 percent compared to the same month last year. This decline exceeds the decline by 22 percent recorded in July last year. Real estate value is still continuing its decline for the last two years.
Investment real estate transactions declined to reach 89 transactions (86 contracts and 3 agencies) in July compared to 101 transactions recorded in June. The monthly decline in July was less as it reached 11.9 percent compared to a higher decline by 39 percent in June. The number of transactions declined on annual basis by 30 percent in July compared to the same month last year.
Distribution of investment real estate sales governorate wise
Despite the decline in investment real estate sales value yet Hawally governorate is still holding the leading position in regard to investment real estate sales value. The value of sales consolidated on weekly basis reached KD 25 Million in July, thus representing 42 percent of sector transactions and maintaining the same share last month. The value of sales was mainly focused in Hawally by KD 13.6 million followed by Salmiya by KD 10 million.
The value of sales in Ahmadi governorate reached KD 19 million ie 32 percent of governorates sales in regard to investment sector in July compared to 41 percent of all governorates sales in June. The value of sales was mainly focused in Mahboula area by KD 13.5 million followed by Mangaf area by KD 3.4 million.
Sales in Mubarak Al-Kabeer governorate exceeded KD 7.9 million which has resulted mainly from sales of lands in Sabah Al-Salem areas during July.
Commercial real estate sales value
Commercial real estate sales value reached KD 20 million in July, thus recording its lowest level within 2 years. The value declined by 32 percent or KD 10 million compared to KD 30 million in June. This decline ratio exceeds the monthly decline ratios recorded in June by 13 percent. This indicates the continuation of the fluctuation status which the commercial sector is witnessing despite the fact that sales value levels have been increasing except for few months in which there was a decline. Commercial real estate sales value declined by 35 percent in July compared to the high levels recorded in July last year by KD 31 million.
Average commercial real estate value governorate wise
Average commercial real estate value reached KD 4 million in July ie a decline by 32 percent or KD 1.9 million compared to KD 6 million in June. Real estate value witnessed a significant increase by 57 percent in June. However, average commercial real estate value in July this year was more than the value recorded in July last year by 18 percent where value reached KD 3.5 million.
Commercial real estate transactions stabilized at 5 transactions in July compared to the preceding month. However, this level is the lowest level recorded in two years. The ratio recorded in July this year has declined by 44 percent compared to the value recorded in the same month last year. Hawally governorate took the leading position in commercial real estate sales governorate wise by KD 15 million representing 74 percent of the value of commercial sector sales. This value covers three properties in Hawally area. Ahmadi governorate comes next with KD 2.9 million being the value of a piece of land in Sabah Al-Ahmed Marine area followed by Capital Governorate with KD 2.4 million being the value of a commercial property in Qibla area.
Warehouses and handcraft real estate transactions value
Handcraft real estate sales value has exceeded KD 6.2 million ie an exceptional increase by KD 5.6 million compared to its limited level KD 600 thousand in June. However, the value recorded in July this year is less than the value recorded in July last year by 30 percent. This annual decline ratio is similar to the ratio recorded by the handcraft sector when sales reached KD 9 million last year.
Average handcraft real estate transaction value increased in July to reach KD 693 thousand ie an increase by 16 percent or KD 93 thousand compared to KD 600 thousand recorded in June, thus recording a significant growth rate during July which is higher than the preceding month growth rate, Despite the good monthly performance where average value increased in July this year yet the real estate value did not reach the value recorded in the same period last year. The value declined by 45 percent compare to July last year. The value last year recorded an increase by 61 percent as the average value reached KD 1.3 million.
Warehouses and handcraft real estate transactions have reached 9 transactions in July compared to 1 transaction in the preceding month. Transactions in July included a value KD 3.4 million for several buildings and plots in Aardiya Handcraft area. The sector sales reached KD 2.8 million being the value of several handcraft lands in Abu-Fatira and West Abu Fatira Handcraft area at Mubarak Al-Kabeer governorate.
Coast strip transactions
Coast strip sales: The month of July did not witness any activity in this sector compared to the preceding month. The preceding month witnessed the commencement of its transactions with a transaction amounting KD 1.4 million covering the value of two transactions in Ahmadi Governorates.