– 22 percent decline in residential real estate transactions to 542.5 million dinars
The Kuwait Finance House (KFH) reported that the volume of real estate transactions at the end of the first quarter of this year amounted to 951.8 million dinars, an annual increase of 2.5 percent over the first quarter of 2021, and 5.6 percent over the fourth quarter of 2021.
He explained that while the private housing sector continued its gains and upward trajectory to record prices, the value of trades declined in the first quarter of 2022, by 22 percent on an annual basis and 8.3 percent compared to the fourth quarter of 2021.
In a report, KFH pointed out that residential real estate transactions accounted for 74.9 percent of the total transactions in the first quarter of 2021, and decreased in the fourth quarter to 65.7%, and continued to decline in the first quarter of this year to 57 percent of the trading volume, reaching to 542.5 million dinars, as experts attributed this to the arrival of prices to record high levels that contributed to reducing the volume of trading and declining its rates.
He added that commercial and investment real estate witnessed a growth in the volume of trades during the current year, in light of the improvement in economic conditions and the return of life to normal, which was positively reflected on them.
The report stated that the change in the investment real estate increased by 73.6 percent on an annual basis, and 28.4 percent compared to the fourth quarter of 2021, noting that investment real estate trades accounted for 17.1 percent of the trades in the first quarter of 2021, and increased in the fourth quarter to 23.9 percent, and the increase continued in the first quarter of this year to 29 percent to 276.1 million dinars.
This comes at a time when the change in commercial real estate amounted to 77.2% compared to the first quarter of last year, and 94.7% compared to the fourth quarter of 2021, while its trading represented 6.2% of the total in the first quarter of 2021, and decreased to 5.8% In the fourth quarter, before rising in the first quarter of this year to 10.7 percent of the trading volume, reaching 102 million dinars.