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Real estate residential sector to recover in 2010 - expert.

A real estate expert expected the real estate market of the residential sector to prosper in 2010 due to the political stability and the rescheduling of debts for some companies.Speaking to KUNA, Director General of the real estate division at Al-Mishkat Real Estate Group, Yusuf Al-Alian referred the prosperity of the real estate market in the residential sector to the verdict issued in favor of the Kuwait Finance House and Kuwait Bank and the Middle East (BKME) transfere into an Islamic Bank. Al-Alian expected the investment sector to increase by 12 percent and the leasing rates to decrease by 10 percent. The prices of the real estate business sector have been stable and the leasing rates declined due to the reduction of funding.The real estate in 2009 in Kuwait witnessed an extreme recession especially with the low demand during the first ten months of 2009.The trading volume decreased in all real estate sectors including the private residence, investment, and business, industrial or agricultural.People were incapable of buying real estates, thus a decline of 30 to 40 percent was observed since the beginning of the global financial crunch, he added.The prices of the real estate in areas such as Ishbiliya reached KD 100,000 for an area of 400 square meter, overlooking one street; and KD 110,000 for an area of 500 square meters in Messilah; and KD 70,000 for an area of 300 square meters in Funaitees and Abu Fatirah; and KD 100,000 for an area of 500 square meters in Oqailah.Prices reached KD 170,000 for an area of 500 square meters in Zahra area; KD 240,000 for an area of 500 square meters in the Salam area; and finally KD 35,000 for a 400 square meters in the Residential Kheran area, the real estate expert said. Citizens with good financial status showed greater interest and demand on residential houses especially after the verdict in favor of Kuwait Finance House and the Islamic Banks to trade in residential houses.The prices of the houses in some areas remained the same, where as other areas, the prices went down, he said.The price of a two stories and half house in Ishbiliya, over a 400 square meter area, overlooking two streets reached KD 190,000; whereas a two stories house in Oqailah over a 375 square meters, corner location, reached up to KD 170,000; a three stories house in West Jelib over a 400 square meters area reached KD 190,000.The prices of the houses in local areas were stable with a slight decline due to the low demand and the hesitant buyers.With the beginning of the last quarter of 2009, the real estate prospered and the prices of the houses and lands have changed and noticeably increased in the new areas and the areas of which the Municipality finished from infrastructure works such as Funaitees and Abu Fatirah.The investment sector witnessed a state of stability and equilibrium on the supply and demand during the first half of 2009, with a slight change of the demand on the buildings which violate the Municipality's regulations because they yield better profits and the possibility of selling them reaches 13 percent.The investment sector of the second half of 2009 witnessed a slight demand which affected the prices of the buildings and the percentage rates. In which, the percentage rate of Hawalli and Salmiyah was nine percent and has become ten, and in Mahboulah, Abu Halifah, and Fintas, was 11 percent and reached 12, and Farwaniya was nine percent and reached 11.The business sector was the strongest in 2009 concerning the supply and demand and the increase of its price; however with the first half of 2009, this sector underwent some problems due to the lack of tenants.

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Publication:Kuwait News Agency (KUNA)
Date:Jan 10, 2010
Words:655
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