Business | Property
Kuwaiti real estate sales decline 35% in April
Kuwaiti real estate sales fell about 35 per cent in April, official data showed on Wednesday, the first decline in months after the government restricted residential property trading in a bid to curb record inflation.
- Reuters
- Published: 00:08 May 22, 2008
Kuwait City : Kuwaiti real estate sales fell about 35 per cent in April, official data showed on Wednesday, the first decline in months after the government restricted residential property trading in a bid to curb record inflation.
Inflation jumped to a record 9.5 per cent in January, driven mainly by a 16.1 per cent rise in housing costs.
The value of all real estate deals - including residential, investment and commercial property but excluding storage - was around 206.03 million dinars ($772.7 million) in April compared to 316.75 million dinars a year ago.
Global Investment House analyst Walid Samer said the fall might help the central bank to dampen inflation though the coast of food imports was also a big factor in prices.
Kuwait dropped its dollar peg in May 2007 and adopted a currency basket to reduce the cost of non-dollar imports. It pays for a third of its imports in euros.
"Inflation will not fall but might stagnate," Samer said. He said a new law restricting trading in residential property was the main reason for the drop in sales after real estate sales jumped 15 per cent in March.
Share this article
Gulf News classifieds
Popular in Business
Business Editor's choice
-
UAE companies in full force at WTM
Seventy-eight participants are from Dubai and 50 from Abu Dhabi
-
DIFC committed to high standards
Ensures an efficient process to serve the business community
-
Sweet life in the Middle East
A sweet look at the confectionary industry in the UAE and Middle East
-
UAE
Abu Dhabi's infrastructure spending
New road networks to reignite construction sector.
