Kuwaiti real estate market grows by one percent

KUWAIT, Oct 29 (KUNA) -- The local real estate market grew by one percent during the third quarter of 2007, a specialized real estate report released on Monday said.

The report issued by Kuwait Finance House (KFH) said deals increased during that period, with a hike of one percent compared to the second quarter of 2007.

It pointed out that the general stagnation in real estate deals was a result to the fact that many investors and real estate owners were spending their summer vacation.

However, prices of real estate in all Kuwaiti areas witnessed hike dramatically, it added.

Increased demand on housing was caused by the growing population, small number of land plots, and the long time people have to wait to get housing provided by the government.

According to the report, real estate deal and prices also increased due to the continuous hike of Kuwaiti crude price, exceeding USD 75 during 2007's third quarter, as well as the constant efforts of the Central Bank of Kuwait (CBK) Central Bank of Kuwait (CBK) to reduce inflation.