Price inflation causes sharp decline in Kuwait’s housing real-estate

Price inflation causes sharp decline in Kuwait’s housing real-estate

KUWAIT: The Kuwait housing real-estate scene had witnessed a sharp decline in deals by 50 percent in the first half of 2022 compared to the same period in 2021. Some attributed this decline to price inflation of real estate and the static purchasing power on part of clients in Kuwait leading to a huge margin between supply and demand. There were 2,470 deals worth KD 1.13 billion (around USD 3.3 billion) in the first half of this year as opposed to 4,814 deals worth KD 1.40 billion (around USD 4.6 billion) in the same period in 2021. Speaking on this issue, local real-estate expert and Director General of Abraj Behbehani company, Alaa Behbehani said Tuesday that the price inflation was the main cause of the sharp decline.

Kuwait, as in the case of other countries, has been affected by the increase of interest rate announced by the US Federal Reserve, said Behbehani, adding that the latter continued to increase the interest rate of the US Dollar, which contributed in turn to withdrawal of liquidity from the world market. The effects of the Federal Reserve’s decision might not be felt now within the national market but within a year from now, Behbehani