Abdullah Al-Shemmari, the Chief Executive Officer of Arkan Al-Kuwait Real-Estate Company, said in a statement to KUNA that the corporate figures signal increasing demand for housing properties, following a judicial ruling allowing Islamic banks to finance real-estate transactions, thus granting potential investors greater purchase margins.
ndicating that the investor comeback in this sector was, partially, due to drop of prices of plots as a result of impact of the international meltdown, he said districts with the indication of highest demand were East Al-Gurain, Al-Messilah, Abu Feteirah and Al-Funaitees. Average price of a plot of land for housing (some 400 sq m) in these districts is currently estimated at KD 85,000-95,000.
Elaborating, Al-Shemmari forecast restoration of an upward trend of property prices due to the restoration of substantial demand, adding that many citizens, who were on the waiting list for the government plots, purchased in the commercial residential areas, attracted by lucrative prices.
As to investment properties, he spoke of current "superficial hike of prices." However, the actual prices may be different, signaling restoration of confidence among the landlords, buoyed by real-estate companies' search for new sources of funding.
Another factor for the recovery of the investment sector is the predominant belief among the entrepreneurs that returns of the real-estate remain larger than those of the banks. For example, annual returns from an investment plot in Hawally is estimated at 7-8 percent, compared to only four percent from a bank deposit.
A "substantial number" of entrepreneurs has shifted to the investment plots in densely-populated district, namely Hawally, Al-Salmiyah, Al-Farwaniah and Mahboulah.
For his part, Hani Al-Abdullah, in charge of marketing and sales in Dinar Co., told KUNA that he has noticed recovery in the property market after adoption of the development scheme, last year, particularly in areas with rapid development of the infrastructure, such as Al-Khairan and Al-Sabbiah.
He indicated at citizens' confidence in the government construction and development plans, with a shift to investment in the tourist and entertainment sectors. Substantiating his remarks, he noted the increasing number of nationals visiting exhibitions and promotion events and the shift to the local market as a result of the disturbances currently predominant in the Arab world. He also cited periodical reports by the Ministry of Justice, showing mounting property deals locally.
Samar Jamal, the chairperson of Magic Home Co., also drew a positive picture of current conditions in the national sector, citing noticeable investments in housing apartments in areas such as Al-Salmiyah, Al-Fahaheel and Bneid Al-Gar.
The government decision to increase the housing loans for the divorcees and widows reaching KD 70,000 from KD 45,000 tangibly contributed to boosting this particular sector.
Mohammad Hassan, in charge of sales in Al-Argawan Co. also agreed that the Kuwaiti entrepreneur desire to invest in the Arab countries had dropped due to the wide-spread unrest, shifting to more stable nations such as Turkey and some countries in eastern Europe. Kuwaitis continue to invest in Paris, Geneva and London where such deals have remained feasible For the latest updates PRESS CTR + D or visit Stock Market news Today
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