KUWAIT, Aug 29 (KUNA) -- After half a year of recession, the local property market is still in need for measures to overcome financial strains and prod banks to enhance funding for real property projects, a specialized report said Sunday.
The slide of the real property sales in July resulted from the faltering demand and the wavering transactions in anticipation of government measures to amend the legislations and regulate the market, according to the report issued by Emaar Alahlia real estate co.
An early enforcement of the state five-year development plan can prod demand, revive the market and restore the confidence of investors.
The remarks of government officials about the ability of the government to realize the targets of the plan can contribute to the enhancement of real property prices in the coming two years.
The remarks can also revive the market in the first quarter of the coming year based on the sound tendency of the government to rehabilitate the national economy particularly in the commercial and investment activities.
The activity of the property market is closely related to the development plan on which investors pin high hopes to overcome the financial crisis through crediting facilities, the report affirmed.
The entire property market is driven by the activity of the residential sector which sets the pace of other sectors, according to the report.
The total value of transactions cleared in July in all property sectors stood at KD 130.5 million, down by 27 percent from the KD 191.4 million of the previous month.
The value of residential transactions in July stood at KD 72.9 million compared with KD 110.3 million in June.
The investment property sector slid by 52.4 percent on a monthly basis in July with the value of deals dropping to KD 37.7 million from KD 72.9 million in June, the report added. - Kuna