Kuwait's real estate sales tumble

Kuwait: Kuwait's real estate sales plunged 56 per cent in October, the seventh month of decline after the government restricted private firms from trading in residential property to curb inflation, official data showed on Wednesday.

Real estate sales were down 40.95 per cent in September and 45.20 per cent in August, compared with the same period last year, the data obtained by Reuters showed.

Residential sales, the biggest proportion of total sales, fell 74.44 per cent year-on-year to 32.08 million dinars (Dh427.55 million) in October, from 36.13 million dinars in September and 42.22 million dinars in August.

Commercial property fell about 33 per cent in October to 22.35 million dinars, compared with the same period a year earlier, after 61.33 million dinars in September and 12.87 million dinars in August.

Regulations

Investment property sales slowed 45.23 per cent in October to 40.06 million dinars, after 26.51 million dinars in September and 33.86 million dinars in August.

The government introduced regulations barring private firms from buying and selling residential units to try to restrain real estate prices.

Kuwait, the only Gulf Arab state without a dollar peg, is fighting record inflation hitting 11.64 per cent in August, mainly on a 13.15 per cent rise in housing costs.

The central bank has urged the government, which owns more than 90 per cent of land, to give away more lots to citizens to curb inflation.