Real es­tate grid­lock highlights fu­ture fears, says an­a­lysts

Kuwait Times - - LOCAL -

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.

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