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

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

KUWAIT: The Kuwaiti housing real estate market saw a 50 percent drop in transactions in the first half of 2022 compared to the same period in 2021. Some attribute this decline to real estate price inflation and stagnant purchasing power on the part of Kuwaiti clients, resulting in a large margin between supply and demand. In the first half of this year, there were 2,470 deals worth 1.13 billion Kuwaiti dinars (approximately $3.3 billion), compared to 4,814 deals worth 1.4 billion dinars in the same period in 2021. Speaking on the subject, Alaa Behbehani, director general of Abraj Behbehani Co., stated on Tuesday that price inflation was the primary cause of the sharp decline. Kuwait, like other countries, has been affected by the US Federal Reserve’s interest rate increase announcement, said Behbehani, adding that the latter has continued to raise interest rates on the US dollar, which has contributed to a withdrawal of liquidity from the global market. The effects of the Fed’s decision may not be felt in the national market for a year, he added, going on to say that Kuwait was not immune to global economic events, and that bank deposits had become more appealing to major