Sales in Kuwait’s residential sector totalled KD98 million ($324 million) during July falling below the KD100 million mark for the first time in almost three years, reflecting a decrease of 28 per cent year-on-year (y/y), a report said.

Reminiscent of 2010’s performances, the sector recorded only 251 transactions, dropping 41.5 per cent y/y, added the latest Economic Update from the National Bank of Kuwait (NBK).

Sales across the market’s three main sectors (residential, investment, commercial) totalled KD247 million, down 7.8 per cent year-on-year (y/y) and 23 per cent for the first seven months of the year compared to the same period last year. Some softness has been expected due to the Eid and summer holidays; but the market appeared to worsen as oil prices tumbled further in July.

Activity was heaviest in the Ahmadi governorate, which accounted for 38 per cent of all residential transactions. Mubarak Al-Kabeer governorate came in second, accounting for 15 per cent of transactions. Vacant plots constituted 41 per cent of all transactions in the residential sector.

Sales in the investment sector also declined in July. Total sales reached KD120 million, a 9 per cent y/y decrease. However, the number of transactions increased by 16 per cent compared to last year. Apartments accounted for 53 per cent of all transactions while whole buildings constituted 44 per cent of all transactions.

The Ahmadi governorate once again witnessed the bulk of activity, with 55 per cent of all transactions; Hawalli came in second with a 31 per cent share. The largest transaction took place in Jahra for a plot sold at KD4.2 million. The sector recorded a 26 per cent decrease for the first seven months of the year compared to the same period last year.

The commercial sector was the only one to show y/y gains. Total sales in the sector reached KD31 million, significantly higher than its performance in July 2014. The sector recorded nine transactions with the highest being for two complexes in Salmiya worth KD7 million each.

Sales in the commercial sector, known for its volatile performance, remains down 19 per cent for the first seven months of the year compared to the same period last year, but has performed better than the others so far this year.

Kuwait Credit Bank (KCB) approved KD13.7 million in loans in July. The value of approved loans during the month was down 20 per cent y/y, while disbursed loans were up by 41 per cent y/y totalling KD14.5 million.

The Public Authority for Housing Welfare (PAHW) began awarding plots in South Mutlaa City; the 29,000 unit project is the authority’s largest to date.  PAHW aims to distribute 12,000 units on paper by the end of the fiscal year; however physical distribution is expected in 2018, once the city’s infrastructure is complete. – TradeArabia News Service