Total real estate sales in Kuwait fell by KWD 150 million in November 2017, after a strong performance in October, according to a recent report by the National Bank of Kuwait (NBK).
Real estate sales amounted to KWD 147.3 million in November across all sectors through 301 transactions, compared to 216.9 million in the prior month, the report added.
“The contraction in prices across the sectors moderated further in November, with the NBK investment building price index breaking into positive territory for the first time in a year and a half,” the report continued.
Sales activity in the residential sector grew 16% year-on-year to KWD 83 million in November,as the number of the sector’s transactions stood at 236, making up 78% of all real estate activity for the month, while land purchases made up 28% of the 67 transactions.
“Regionally, residential plot sales were in line with previous trends, with heavy activity in the Sabah Al-Ahmad coastal area, Funaitees, and Abu Ftaira,” the report added.
The NBK residential home price index rose to 150.6 in November from 150 in October, while NBK’s residential land price index slipped slightly to 175.5 from 175.9 in October.
The contraction from a year before eased in the home prices to just 0.6% year-on-year, but widened slightly for residential land prices to 2.4% year-on-year in November.
Investment property sales dipped after a surge in activity in October, as sales in the sector retreated 33.6% year-on-year to KWD 38.5 million in November.
The investment property’s average monthly performance dropped 18% to KWD 56.5 million in the first eleven months of 2017, compared to the same period in 2016.
The NBK investment building index broke into positive annual growth territory for the first time in over a year, reflecting strong gains in September and October, the report pointed out, adding that the index edged up 0.1% year-on-year to 182 in November 2017.
Commercial sector activity eased to KWD 28 million in November, falling below 2017’s monthly average, after a sharp rise in October.
Five transactions in the commercial sector, worth a combined KWD 25.8 million, took place in November.
The volatile sector plunged 70% year-on-year in November 2017, having witnessed a surge in activity in the year-ago period.
The largest sale for November 2017 was a commercial building in Al-Qibla that was sold for KWD 17.6 million, the report concluded.