Real estate gridlock highlights future fears, says analysts
Housing prices in Kuwait have been on a downward spiral due to various factors including the decline in oil prices and growing fears over further regional political instability. Real estate specialists revealed that prices have hit their lowest in years, prompting many property owners to bide their time before putting up their properties on sale. Recent official data provided by the local real estate industry shows a lull in transactions in that sector, with an 18 percent drop in value in May of this year, as compared to last year.
Kuwait’s real estate industry, particularly, the housing sector, has been hit hard by plummeting oil prices and regional unrest, Secretary General of the Real-Estate Union Qais Al-Ghanim said. The real estate mogul pointed out that political and economic upheaval has fueled concerns of homebuyers, which explains their reluctance to purchase properties. Meanwhile, the consensus among analysts is that the real estate industry has yet to recover from the 2008 economic crash, as property owners like Nasser Al-Aidan are still feeling the ill effects. Aidan pointed out that the drop in prices could be a silver lining for homebuyers, but proprietors have no choice but to wait for a much coveted price recovery.