PAHW requests revisit of installments
Bureau preps strategy to execute various housing projects
KUWAIT CITY, May 23: Housing sector is worse hit by financial crisis. The sector is a major pillar of development in the country and Public Authority for Housing Welfare has requested a revisit of the installment of government apartments in Jaber Al-Ahmad and North West Sulaibikhat residential cities for KD 40-KD 60 per month or 10 percent of the salaries of concerned citizens, reports Al-Qabas daily.
The new development amounts to additional burden on citizens who are likely to be servicing other debts. The content of a memo sent to the finance sector of housing authority indicates the cost of an apartment in northwest Sulaibikhat is about KD 77,000.
It noted Kuwait grants the highest housing loan of KD 70,000 among other GCC countries and the country also has the lowest rate of refund, indicating some countries deduct about 25 percent of monthly income in installment.
As regards future projects, the authority disclosed major factors that will continue to affect its financial status include lack of independent investment opportunity through which it could source for funds.
It noted the sector depends solely on national budget, which is also responsible for execution of public facilities and services. The fear now is that budget deficit could make it difficult meeting with the funding of aforementioned facilities, especially as the cost of construction materials continues to soar.
Meanwhile, Public Private Partnership Bureau has taken serious initiatives to solve housing crisis in Kuwait, as the issue has become problematic and worrisome in the past few years, reported Al Nahar daily.
A developed strategy has since been prepared to execute various residential projects with a reduced cost of 60 percent from the current value, sources said. They also said the first step will be to establish a company whose objective will be to execute residential projects with capital of KD 100 million and 50 percent of its shares will be allocated for citizens, while concerned companies and institutions take the rest.