Kuwait’s real estate market recently witnessed stagnation due to low demand and an oversupply, yet there is the possibility of a revival early in 2017, according to experts quoted by KUNA state news.
Market inactivity is not such an extraordinary thing, stated Qais Al-Ghanim, Secretary General of the Real-Estate Union, who also forecast some trades during the remainder of the year.
If trade remains slow, however, it is expected that rents may drop considerably, causing trouble in other sectors too. The reasons for this drop are the aforementioned oversupply and a low demand, along with the recent harsh economic conditions.
Al-Ghanim also criticised the large number of inexperienced investors bursting onto the real estate market who failed to make sound calculations for their investments and negatively affected the sector, in his opinion.
Prices for land plots and buildings in Kuwait have already dropped significantly in some areas of Kuwait, with a further drop expected in January, leading Al-Ghanim to advise buyers to wait until then to make new purchases.