Kuwait’s real estate sales hit 18-month high in May: NBK

Real estate sales in Kuwait rose 37 percent year-on-year (YoY) to KWD 289 million in May, the highest in 18 months, National Bank of Kuwait (NBK) said in an economic update.

The increase was driven by residential and investment sectors, with sales increasing by 23 percent and 38 percent YoY, respectively.

“Activity has been relatively volatile in recent months, with three of the last six months seeing elevated sales, something that could be signaling an end to the two year slowdown,” NBK said.

Real estate prices across most sectors held steady, with the residential sector rebounding after a soft April. Sales in the segment jumped to KWD 138 million in May, through 406 transactions. Prices were flat in May, indicating a stabilizing trend.

The NBK residential home price index stood at 151.2 point, flat for the month. The bank’s residential land price index retreated in May to 169.1 points and was down 9.5 percent YoY.

In the commercial sector, activity picked up in May after four months of weakness. Sector sales reached KWD 62.8 million on six transactions.

“The slowdown in the real estate market, and the price correction that accompanied it, has started to have an impact on housing rent and consumer inflation,” NBK said.