More than 45,000 housing units are standing vacant in Kuwait due to the repercussions of coronavirus, CSRGulf announced yesterday.
“Real estate companies face major problems, especially owners who have bank loan installments to reconcile, in addition to the delayed rent payments of thousands of expatriate tenants who left and never came back due to travel restrictions,” the centre said in a report.
Quoting an official source, the report pointed out that over 800,000 expatriates left Kuwait in 2020 either voluntarily or after losing their jobs.
The sources added that the number of departing expatriates was expected to increase in 2021 due to “the recent government decisions, including plans to nationalise public jobs and halt residency renewals for those above 60 years old.”
So far, a total of 219,125 have contracted COVID-19 in Kuwait, 1,226 of whom have died, and 203,539 others have recovered, according to the US’ Worldometers.
KUWAIT CITY: Real estate experts have unanimously agreed that the current prices in the real estate market are exaggerated, and have unhealthy repercussions on the market, reports Al-Qabas daily.
They indicated that this matter constitutes a burden on the citizens who wish to obtain their dream home, insisting that a serious stance must be taken to find solutions to limit the crazy price hikes in the real estate market.
The experts said they expect the rate of increase in residential prices to continue in the year 2021 from five to ten percent. In an interview, they stressed that a state of stagnation may occur in the real- estate sector after the month of Ramadan and with the third quarter period, which may help in correcting the prices.
Other real estate sectors are being affected by a decline in circulation and prices, “otherwise we find the residential real estate sector to be active and witnessing an increase in circulation”.
He indicated that the prices in the residential sector are exaggerated, adding that, “today everyone is complaining, and blaming the officials as well as the speculators and traders”.
United Real Estate Company, the Kuwait-based developer, has said that one of its key subsidiaries, Mena Homes Real Estate Company, has signed a $55 million construction contract for a key residential project – Byout Hessah.
In a statement, the developer said that the project – located within the Hessah AlMubarak District – is a modern, all-inclusive neighbourhood community that will feature a mix of luxury townhouses and apartments.
The development will feature 40 townhouses and two 12-floor residential buildings with 104 upscale apartments, the statement continued, adding that these would be set amidst landscaped surroundings and conveniently located next to Hessah AlMubarak District’s retail and dining hub and other commercial components.
The contract has been awarded to Alghanim International General Trading and Contracting, a major player in Kuwait’s construction sector, said URC in its filing to Kuwait Bourse.
The entire project is due to be completed in 690 calendar days, it stated. The financial impact would be positively reflected to the project and the associate company in its future earnings, it added.