New urban areas expected to stir Kuwait realty market

KUWAIT CITY, Nov 1, (KUNA): Kuwait’s real estate market has been in recession over the third quarter of the year, but is expected to see recovery in the near future, in particular in new urban areas.

The expectations are stirred by the development projects the government is carrying out, together with the rise of oil prices, in addition to the rising demand in the real estate sector.

Interviewed by KUNA, DirectorGeneral of Athra Real Estate Company Maitham Al-Shakhs said the new areas would witness noticeable activity over the rest of 2017.

Yet, these areas are facing certain problems that need to be solved. These are topped with the completion of the infrastructure in some parts of the Jaber Al Ahmad New City, he said.

As rent has been slightly on the decline in some parts of South Surra during the third quarter of the year, Al-Shakhs predicted demand on apartments would rise in the neighborhood, mainly in Zahra, Shuhada and Hateen.

He noted that demand has also risen on plots of land in Abu Fetira and Masaeil, and more is expected in 2018.

According to Al-Shakhs, the market was negatively impacted over the past period by some MPs’ calls for reducing migrant labor in the country, besides the fall of rental value over the past two months in vivid lively areas like Farwaniya, Hawally and Salmiya.

Real estate activities were notably declined during the period JanuarySeptember 2017, compared to last year chairman of Al-Dughaishem Real Estate Company, Abdul Aziz AlDughaishem.