Transactions in the national real-estate sector posted a hike of 35 percent last October compared to the previous month, according to a freshly released report.
The report, prepared by the Emaar Al-Ahlia for Real-Estate Services Company, said that the interest discount on banking deposits constituted a main motive for activation of dealings in the investment and housing sectors, despite the year-long recession in this sector.
It forecast hike, in November and December, regarding volume and value of the real-estate transactions, accompanied by prospected entry of new portfolios into the domestic property market, following fall of the interests on banks' deposits.
Fall of rates of the housing and investment real-estates was effective in activating purchase operations last October, the report said, forecasting rise of the prices of housing and commercial real-estates in the end of December.
It alluded this prediction to the tendency among some dealers in snatching opportunities resulting from the undesirable sale of plots for sake of paying overdue debts. These conditions led to major deals in October as a result of the drop of the value of some investment real-estates at most of the top favored regions, namely Al-Salmiyah, Hawally, Al-Farwaniya, Al-Mangaf, Abu Hulaifa, Fahaheel and Al-Jahra.
As to the housing sector, the report said it posted a rise of 38 percent in terms of transactions in October compared to the month before, as a result of optimism that prevailed among the brokers.
It alluded the upbeat atmosphere to the rule of the Court of Cassation in favor of the Kuwait Finance House for mortgaging the housing plots and rejection of libel suit of the real-estate registration that bans mortgage housing dealing.
Regarding the investment sector, it said that it was the most active sector in October compared to the past months, where the investment deals involved 130 plots, valued at KD 42.6 million, compared to 94, worth KD 22.8, in September.
As to the commercial sector, its operations rose 40 percent, and the value of the commercial plots reached KD 44.6 million. - Kuna