Sluggish property sales in the second-quarter of 2019, which followed a not-so-active first-quarter, has left many players in the real estate sector wringing their hands. While the industry consoles itself by saying that second-quarter sales were down on account of the holy month of Ramadan and the holidays, the impact of the exodus of expatriate families on the market cannot be denied.
The jitteriness of the market was evident in the number of market manager who arrived to appease sentiment in the sector. Putting a brave face to the current slump, Al-Dlaijan Property Manager Suleiman Al-Dlaijan said housing and investment rates remained the same, adding that majority of housing traders were brokers and not those seeking houses.
Trades in housing, investment and commercial sectors were low largely due to stakeholders’ preoccupation with Ramadan, Umra pilgrimage and family duties, he added. Property was also temporarily affected with regional developments, unlike trades in gold and other sectors, the prices were not noticeably affected too owing to short supply and tenants’ holding of their apartments, Al Dlaijan explained.
For his part, Secretary of Kuwait Real-Estate Union Qais Al-Ghanim, said the market witnessed limited activity due to abundant financial resources among traders. He also admitted that the housing sector wobbled due to a number of factors such as dependence on expatriates.
Currently, the market is unstable but the situation will change after annual holidays, Al-Ghanim added. Abdulaziz Al-Dghaishem, a property expert, said the market in the second-quarter of 2019 witnessed fluctuation. In April, it was noticeably active in all sectors. However, the situation changed in May where the market became gripped with temporary recession due to Ramadan and Eid holidays. The recession persisted in general in June, he said. The market is forecast to recover as of mid-September, predicted the expert, unless the third-quarter also becomes sluggish on account of the upcoming Eid holidays.
The Times Report
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