The real estate sales acrtoss Kuwait plunged 11 per cent year-on-year (y/y) in December to end at KD355 million ($1.2 billion) in 2014 compared to the same period the previous year, said a report.

This was largely attributed to underperformance in the investment sector since both the residential and commercial sectors performed strongly on a y/y basis. Nevertheless the year still saw record sales of KD4.3 billion ($14.5 billion), according to National Bank of Kuwait (NBK).

December sales in the residential sector totalled KD181 million ($612 million), up 16.5 per cent year-on-year. A total of 509 residential transactions were recorded during the month, stated the NBK report.

The country's top lender said the residential activity was once again heaviest in the Ahmadi governorate of Kuwait, which accounted for 36 per cent of all residential transactions during the month.

More specifically, 40 per cent of all transactions represented sales of plots in Sabah Al-Ahmed Sea City. The average transaction size in December was KD357,000 ($1.2 million), up 13 per cent month-on-month (m/m), which could possibly signal a slowdown in the sale of lower-priced units from Sabah Al-Ahmed Sea City.

Meanwhile, the Mubarak Al-Kabeer and the Capital governorates accounted for 20 per cent and 17 per cent of all transactions, respectively.

Comparing the sector’s full year performance in 2014 with the previous year, total residential sales were up by five per cent to KD1.9 billion ($6.4 billion) while total transactions dropped by six per cent to 5803.

This was perhaps an indication of the current shortage of supply in the market. Not surprisingly, Sabah Al-Ahmed Sea City constituted 40 per cent of all residential transactions in 2014, placing Ahmadi governorate first among governorates in transaction activity, stated the report.  

In December, sales of KD134 million ($453 million) were recorded in the investment sector, a decrease of 35 per cent y/y. The drop is most likely a result of a base effect as sales in December 2013 were relatively high.

In terms of the number of transactions, 115 were recorded during the month, a decline of 42 per cent y/y. The average transaction size was KD1.1 million.

According to NBK, the apartments accounted for 46 per cent of all transactions. Whole buildings followed, with 44 per cent of all transactions.

The Ahmadi governorate once again witnessed the bulk of activity, with 47 per cent of all transactions. The Hawalli governorate accounted for 28 per cent, it added.

Compared to 2013, total investment sector sales during 2014 surged 30 per cent to hit KD1.8 billion ($6.08 billion). Total transactions, on the other hand, contracted slightly, by one per cent y/y to 1718, the report added.-TradeArabia News Service