Residential property deals in Kuwait declined by 42 percent in April compared to March due to sluggish market activity, with recovery depending on oil price rise, Kuwait International Bank said on Tuesday.
A total of 305 deals worth KD89 million [$293.15m] were registered in April, compared to 528 deals, valued at KD51 million, in March. Average deal value fell by 27 percent compared to last month, reaching KD291,000 per deal, the bank said.
Sales in investment sector fell by 42 percent quarter-on-quarter and 51 percent compared to the previous year, reaching KD42m. The sector registered 60 deals compared to 81 deals the month prior, with average deal value falling to KD706,000 per deal. On the other hand, the commercial sector witnessed only four deals worth KD13m.
“Although moving at a slow pace, prices continued to decline, as a result of economic uncertainty, and demand/supply levels in the market,” the report said.
It added that over the next couple of months, Kuwait real estate market is expected to stand at levels similar to those observed in April, unless the market witnesses positive developments in crude oil prices or economic developments, both locally and globally.