Kuwait’s real estate sales plunged 65 per cent in July, the fourth month of decline after private firms were banned from trading in residential property to leash record inflation, according to government data.

Residential sales, the biggest proportion of total sales, fell 49 per cent to KD87.9 million ($327.5 million) in July compared with July 2007, the data obtained by Reuters showed.

The government introduced regulation earlier this year barring private firms from buying and selling residential units to try to control real estate prices.

Kuwait, the only Gulf Arab state without a dollar peg, is fighting record inflation hitting 11 per cent in April and May, mainly on a 14.9 percent rise in housing costs in both months.

Total deals - including residential, investment and commercial property but excluding warehouses - fell to KD160.7 million in July from KD459.7 million a year ago and transactions fell 32 per cent to 647 deals.

Commercial property fell almost 83 per cent to KD17.8 million, while investment property’s sales slowed 70 per cent to KD55 million.

In June, real estate sales fell almost 28 per cent. The central bank has urged the government, which owns more than 90 per cent of land, to give away more lots to citizens to curb inflation.-Reuters