Real Estate Trading Developments Mar 217 Economic Reports Group Strategy and Corporate Relations Kuwait Finance House Kuwait Finance House Page 1 of 1
This report covers monthly real estate trading developments. It incorporates analysis of all types and levels of trading: private, investment, commercial, storage as well as total real estate sales, thus aiming to monitor periodical changes in local real estate market. Real estate Sales and Average Transaction Value Real estate sales increased on monthly basis, reaching its highest in years by 87% compared to February. It increased annually by 24%. The private residence sector recorded a significant increase due to the major activity witnessed in Mubarak Al-Kabeer governorate and real estate auctions organized during the month. Investment sector came next while commercial real estate sector witnessed a significant monthly decline. Average real estate transaction value increased by 14% on monthly basis. Average investment transaction value recorded the highest increase in Three years reaching 92% followed by commercial real estate sector where average transaction value recorded a monthly increase by 22% and private residence sector, which has recorded an increase by 17%. Despite the increase recorded by all sectors yet the average real estate transaction value indicator was less by 7% compared to the same month last year. The increase in the number of transactions by 6.% had a positive impact on the volume of liquidity which has reached its highest in Two years. This comes as the result of the increase in the number of transactions in private residence where the number of transactions increased by more than double the number recorded in February, thus restoring 214 levels. Number of transactions declined in both investment and commercial sectors by 2.% and 28.6% respectively compared to February. Real estate sales were mainly concentrated in the private residence sector, namely in Messayl area Mubarak Al-Kabeer governorate by KD Million followed by Egaila area - Ahmadi governorate which has recorded a value KD 2. Million. On the other hand, private residence transactions doubled in March compared to last year. Average transaction value increased by 28%. Transactions in investment real estates declined by 1% despite the increase in average transaction value by 18%. Commercial real estate Kuwait Finance House Page 2 of 1
28.2 214. 211. 19.6 1.7 14.1 119. 1. 214.7 191. 1.6. 292.4 29.2. 21. 12. 18.8 1.1 1.8.9 1. 11.4 17.4 49.8 1. transaction value declined significantly by 6% on annual basis, bearing in mind that this was not reflected on the average transaction value which has declined by 2% on annual basis. Gross Real estate Sales Real estate sales value reached KD 9 Million in March, thus recording the second highest level in Two years and recording the highest monthly increase in Five years by 86.7% compared to February. However, real estate sales value has descended for the last Two years. Annual change ratios recorded by the sector are improving gradually as real estate sales have increased by 24% compared to the same month last year. KWD million. Development on Gross Real estate Sales Value Mar 216 Mar 217 Agencies. 2. 2. 1. 1... Mar 16 Apr. May June Jul Aug Sep. Oct Nov Dec 16 Jan 17 Feb. Mar 17 Source: Real estate Registration and Authentication Ministry of Justice, KFH Average daily real estate sales increased to reach its highest last year by KD 14 Million per day within 22 working days in March, thus marking an unprecedented monthly increase by 61%. Also, it continued its ascending trend since the beginning of this year. Average daily trading value increased in March by 24% compared to the same month last year. Distribution of Sales based on and Agencies Real estate sales (contracts) increased by 67% in March compared to February as it exceeded KD 29 Million compared to a decline by 19% in February. Real estate sales (contracts) increased by 9% on annual basis. Real estate sales (agencies) reached an unprecedented level Kuwait Finance House Page of 1
in March KD Million i.e. a monthly increase by KD 4 Million to reach in March times the value recorded in the preceding month. On annual basis real estate sales (agencies) increased to reach, KD 9 Million compared to the value recorded in March last year. Distribution of Real estate sales and market share based on Real estate type Private residence sales reached approximately 69% of real estate sales in March compared to 2% in February. This unprecedented share comes on the back of the remarkable monthly increase in the sector sales coming mainly from other real estate sectors. Investment real estate sector dominated the highest share in real estate sales by 2.% in March. This share is less than the ratio recorded in February.8%. This decline is being recorded despite the increase in the value of investment sector sales in March. The sales of this sector are still in second rank value wise among other sectors. Commercial real estates represented 6.% of the value of real estate sector sales in March compared to 1.9% in February. It still occupies third rank among sectors. Warehousing and handcraft real estate trading sector contribution was limited to 1.% in March. Coast strip sales have not recorded any activity till March, bearing in mind that it made a remarkable contribution by.7% last January. 8.% 7.% Development on Relative Weight of Various Real estate Sales Value Mar. 216 - Mar. 217 Real estate Sales Share Sector wise March 217 1% 6% Private 6.%.% 24% Investment 4.%.% 69% Commercial 2.% 1.% Coastal Strip.% Mar 16 Apr. May June Jul 16 Aug Sep. Oct Nov Dec Jan 16 17 Private Investment Commercial Feb. Mar 17 Source: KFH Kuwait Finance House Page 4 of 1
Average Transaction Value Average real estate transaction value increased in March by 14% compared to the preceding month. Annual change of this indicator comprise fluctuating monthly variations. Average real estate transaction value reached KD 498 Thousand in march compared to KD 47 Thousand in February. Average transaction value declined on annual basis by 7% in March. Development on Average Transaction Value/ Total Transactions Mar 216 Mar 217 K.D Thousand 8 728 7 6 4 2 1 7 96 477 1 497 489 46 42 64 7 47 498 4% % 2% 1% % -1% -2% -% Average Transaction Value Yearly Change - Right Source: KFH Total real estate transactions reached 62 transactions (441 contracts 179 Agencies) which is 2 years highest, thus recording the highest monthly increase during that period by 6.6%. Total real estate transactions continued its ascending trend, which has commenced at the beginning of this year following the descending trend noticed for 2 years except some few months. On annual basis, number of transactions increased in March by % compared to the same month last year. Average daily transactions reached 28 transactions in March i.e. an increase by 41% compared to 2 transactions in February. Kuwait Finance House Page of 1
62 296 28 4 7 7 67 41 99 71 4 441 1 18 1 29 28 17 18 2 27 17 24 179 7 Tranaction Development on total real estate transaction Mar. 216 Mar. 217 6 4 2 1 Agencies Source: Real estate Registration and Authentication Ministry of Justice, KFH Distribution of Real estate Sales on Kuwait Governorates Sales value, consolidated on weekly basis in Mubarak Al-Kabeer Governorate, took the leading position remarkably in March, thus recording more than KD 11. Million of total real estate transactions value i.e. 7% of total real estate sales. This value represents 41% of the number of transactions in all governorates. Hawalli governorate comes next with an increase in the value of sales reaching KD 7 Million i.e. 24% of total governorate sales or 2% of real estate sales. Ahmadi governorate comes in third position with sales value approximating KD 61.6 Million i.e. 2% of the value of sales or 14% of number of transactions. Farwania governorate took the 4th position in regard to the value of real estate sales in March. Sales value increase to reach KD 4.4 Million i.e. 11% of real estate sales value and 9% of the number of transactions. Sales value in Capital governorate declined to reach KD 17.8 Million i.e. 6% of sales value and 7% of the number of real estate transactions. Sales value in Jahra governorate declined to reach KD 8.7 Million i.e. 2% of sales value covering 4% of the number of transactions. Kuwait Finance House Page 6 of 1
6. 96.1 112.8 88.2 62.9 71.8. 79.9 71.4 8.9 78.4 77.1 2 4 6 7 8 9 17. 1 6 11 6 Kuwait governorates share in real estate sales value March 217 2% 11% 6% 2% 24% 7% Mubarak Al-Kabeer Hawalli Ahmadi Farwania Capital Jahra Kuwait governorates share in real estate transactions No. March 217 14% 9% 7% 2% 4% 41% Mubarak Al-Kabeer Ahmadi Hawalli Farwania Capital Jahra Private Residence Sales Value Private residence sales value doubled to approximate KD 212 Million in March i.e. third highest level recorded by this sector in years. This remarkable performance comes after the lowest level, which sales have recorded in years time. On annual basis, sales value increased in this sector by KD 126 Million compared to March where it declined by 47% on annual basis as well. Development on private residence sales value Mar. 216 Mar. 217 2. 2. KWD Million Agencies 1. 1... Mar 16 Apr. May June Jul Aug Sep. Oct Nov Dec 16 Jan 17 Feb. Mar 17 Source: Source: Real Real estate estate Registration Registration and Authentication and Authentication Ministry Ministry of Justice, of Justice, KFH KFH Private residence sales value (contracts) doubled to reach KD 176 Million in March compared to KD 77 Million in February i.e. a remarkable increase KD 98 Million or 128% on monthly basis. Sales value increased on annual basis in an unprecedented manner by 8%. Private Kuwait Finance House Page 7 of 1
residence sector sales (agencies) reached an unprecedented level in March this year KD 6 Million i.e. 4 times the value recorded in February and more than times the value recorded in March last year. Average Private Residence Sale Value Average transaction value of private residence reached KD 41 Thousand in March, thus marking a monthly increase by 17% compared to February. Average transaction value in this sector continued its ascending trend, which it started several months back. Annual comparison shows that private residence sales have recorded their highest level in March by 28% in one year. Accordingly, annual change ratios of this index started to ascend following a clear descending trend earlier. 4 4 2 2 1 1 Development on average private residence transaction value Mar. 216 Mar. 217 41 41 K.D Thousand 14 16 41 46 42 18 1 2 291 Mar 16 Apr. May Jun. Jul Aug Sep. Oct Nov Dec 16 Jan 17 Feb. Mar 17 Average Transaction Value Yearly Change - Right 4% % 2% 1% % -1% -2% -% Private residence transactions reached 28 transactions (8 contracts 17 agencies), thus marking an increase by 277 transactions or 11 % compared to February. The number of transactions increased on annual basis by 7% as it is being noticed that annual change ratios in the number of transactions have continued for more than one year following the descending trend, which it adopted earlier. Kuwait Finance House Page 8 of 1
186 196 12 7 278 266 22 24 244 288 24 227 8 8 1 9 21 26 1 24 2 17 14 29 21 17 Transaction Development on private residence transactions Mar 216 Mar 217 6 4 2 1 Agencies Distribution of Private Residence Sales in Kuwait Governorates Private residence sales value was mainly being focused in Mubarak Al-Kabeer governorate covering a value of KD 97 Million or 46% of the value of sales among Kuwait governorates. The value of sales was mainly focused in Massayl area KD.4 Million. Messila area comes next with KD 21 Million followed by Abu Fatira area with KD 6.7 Million. Sales value in Ahmadi governorate reached KD.6 Million i.e. 2% of the sales value for this sector. Sales were mainly focused in Egaila area by KD 2 Million followed by Sabah Al-Ahmed Area by more than KD 11.6 Million. Sales value in Hawalli governorate reached KD 28.8 Million representing 14% of the value of residential sector sales. Sales were mainly focused in Jabriya area with KD. Million, Sadiq area by KD Million and Rumaithiya area by KD.8 Million. Investment Real estate Sales Value Investment real estate sales increased to reach more than KD 7 Million, thus marking a monthly increase by 29.6% compared to February. The descending trend of sales in this sector has improved relatively. Investment real estates continued their decline on annual basis. Kuwait Finance House Page 9 of 1
41 4 64 61 9 8 64 6 67 7 7 82 2.9 4.2 4. 4. 1.4.7 14. 1.1.9 12.8 1. 11.9 2.8 However, low ratios in this sector have improved to reach 1% in March. These ratios are much better compared to the annual decline, which has reached 6% for the same month last year. KWD Million 1 9 8 7 6 4 2 1 Development on investment real estate sales value Mar 216 Mar 217 Mar 16 Apr. May June Jul Aug Sep. Oct Nov Dec 16 Jan 17 Feb. Mar 17 Agenci es Contra cts Investment real estate sales (contracts) reached KD 9.8 Million in March i.e. an increase by 9% compared to February. However, this value is still recording lower ratios compared the value last year as it is less in March by 27% compared to the same month last year. Investment real estate sales value (agencies) increased to reach approximately 12.8 Million in March compared to KD 1 Million in February. This value is 9 times the value in March last year. Average Investment Real estate Transaction Value Average investment sector transaction value increased to its highest level in one year to reach KD 896 Thousand in March i.e. an increase by 92%, which is the highest in years. On annual basis and for the second time in 2 years the index has recorded an annual increase by 17% in March. Kuwait Finance House Page 1 of 1
14 99 86 76 7 99 16 112 99 11 119 146 16 4 8 2 2 4 1 1 K.D Thousand Development on Average Investment Real estate Transaction Value Mar 216 Mar 217 1, 9 8 7 6 4 2 1 896 762 74 7 727 668 62 7 72 8 41 4 467 Mar 16 Apr. May Jun. Jul Aug Sep. Oct Nov Dec 16 Jan 17 Feb. Mar 17 Average Transaction Value Yearly Change - Right 4.%.% 2.% 1.%.% -1.% -2.% -.% -4.% -.% -6.% Investment real estate transactions reached 81 transactions in March (7 contracts 8 agencies), thus marking a decline by 2.% compared to February. These levels are still increasing slightly since the middle of last year following the descending trend. On annual basis, the number of transactions in investment sector declined by 2.7%. Tranaction Development on Investment real estate transactions Mar. 216 Mar 217 18 16 14 12 1 8 6 4 2 Agencies Distribution of Investment Real estate Sales Governorate wise Hawalli governorate maintained its leading position in regard to the value of investment real estates by KD 2.7 Million which represents 4% of the investment sector sales. The value Kuwait Finance House Page 11 of 1
6 4 2 14 1 4 2 2 7 6 8 14 of sales was mainly focused in Salmiya area with KD 2.6 Million followed by Hawalli area KD 9 Million and Jabriya area by more than KD 2 Million. Investment real estate sales value in Farwania governorate reached more than KD 16 Million which represents 22% of the sector sales. Main sales were focused in Farwania area by KD 6.6 Million, followed by Jleeb Al-Shuyoukh area by KD.1 Million and Khaitan area by 2. Million. Sales value in Mubarak Al-Kabeer area approximated KD 1.7 Million which represents 22% of the investment real estate sector sales including KD 14.6 Million in Sabah Al-Salem area and more than KD 1 Million in Messayl area. Commercial Rea estate Transactions Value Commercial real estate sector sales reached KD 2 Million in March i.e. a monthly decline by 1% compared to February sales by KD 2 Million. Monthly growth of sales in this sector is characterized by sever fluctuation. Commercial sector sales are witnessing fluctuating growth ratios, yet they are adopting the descending trend. Sector sales have declined in March by 6% compared to the sales for the same period last year which have recorded 16%. KWD Million 16 14 12 1 8 6 4 2 Development on Commercial Real estate Sales Value Mar. 216 Mar. 217 Agencies Mar 16 Apr. May June Jul Aug Sep. Oct Nov Dec 16 Jan 17 Feb. Mar 17 Kuwait Finance House Page 12 of 1
Average commercial real estate value governorate wise Average transaction value in commercial sector increased on monthly basis to reach KD 4 Million. Accordingly, the index started changing upwards following a former decline. Prices increased by 22% for the second month respectively. Commercial real estate value growth ratios are still fluctuating on monthly basis. On annual basis, average transaction value declined by 2% compared to March last year. Development Transaction value/ commercial real estate sales K.D Thousand Mar 216 Mar 217 14, 11,88 12, 1, 9,167 2% 2% 1% 8, 6, 4, 2, 4,76,491,819 6,2 4,77 2,78 2,87 1,672 2,67,291 4, 1% % % -% Mar 16 Apr. May Jun. Jul Aug Sep. Oct Nov Dec 16 Jan 17 Feb. Mar 17 Average Transaction Value Yearly Change - Right -1% The number of commercial real estate transactions reached transactions in March i.e. a decline by 2 transactions only or 28.6% compared to February. The decline in the number of transactions has improved compared to a former monthly decline by 46% in February. On annual basis, the number of transactions in this sector declined by 64%. Sales value in commercial real estate sector approximated KD 11 Million in Hawalli covering two transactions, the first amounting KD 8. Million in Salmiya and the second amounting KD 2.6 Million in Hawalli. The value of sales in Farwania governorate reached KD 6. Million being the value of two pieces of land each covering an area of 1 M2. Kuwait Finance House Page 1 of 1
1 1 1 1 2 4 6 7 19 4 9 9 11 2 12 7 14 6 1 16 14 Transaction Development on commercial real estate transactions No. Mar 216 Mar 217 12 1 8 6 4 2 Mar 16 Apr. May Jun. Jul Aug Sep. Oct Nov Dec 16 Jan 17 Feb. Mar 17 وكاالت Warehouses and Handcraft Real estate Transactions Value Handcraft real estate sales value increased to reach more than KD 4. Million in March i.e. 6 times the value in February where it reached its lowest KD 6 Thousand. Sales value in this sector has recorded notable fluctuations. Sales in handcraft sector increased on annual basis by 22% compared to the value in March last year. Annual ratios of this sector started improving relatively. KWD million 2 2 1 Development on Warehouses and Handcrafts Sale Value Mar 216 Mar 217 Agenci es Contra cts 1 Mar 16 Apr. May June Jul Aug Sep. Oct Nov Dec 16 Jan 17 Feb. Mar 17 Average handcraft real estate transaction value increased in March, thus recording a monthly increase by 16% or KD 7 Thousand compared to February which has witnessed a monthly decline by 1%. Average transaction value index began to take an ascending trend in this Kuwait Finance House Page 14 of 1
sector compared to the descending trend which has prevailed for few months. On annual basis, the index has increased by 22% compared to March last year. Development on Average Warehouses and Handcraft Transaction Value Mar 216 Mar 217 2, % 2,1 K.D Thousand 2% 2, 297% 2% 1,4 1, 1% 94 976 1,24 1, 617 79 6 69 72 7 1% 6 % 62% 1% 17% % -1% 14% -89% 1% -12% -29% -47% -61% -4% -% Mar 16 Apr. May Jun. Jul Aug Sep. Oct Nov Dec 16 Jan 17 Feb. Mar 17 Average Transaction Value Yearly Change - Right Handcraft and Warehouses sector recorded 6 transactions in March, including 4 transactions in Frwania governorate for a total value of KD.6 Million (all in Ardia Handcraft Area). Two more transactions were recorded in Mubarak Al-Kabeer governorate for an amount KD 9 Thousand, one in Masayel and the other in West Abu-Fatira area. The decline in the number of transactions stopped in March, thus recording a significant increase compared to the preceding month. The number of transactions stabilized in this sector compared to the preceding month. Tranaction 2 Development on Total Handcraft & Warehouses Transactions Mar 216 Mar 217 2 1 1 Coast Strip Transactions Agencies Source: KFH, Real estate Registration and Authentication Ministry of Justice Coast strip sales did not record any activity during March 217 following the latest data recorded in last January. Kuwait Finance House Page 1 of 1