KUWAIT: An archive photo showing buildings in Kuwait City and nearby areas. – Photo by Yasser Al-Zayyat

KUWAIT: Real estate experts hoped yesterday the real estate sector would rebound following devastating impacts caused by the coronavirus pandemic, which contributed to numerous vacancies after many expatriates were forced to leave Kuwait. They said demand started to pick up during the first five months of this year, and the housing sector was the most lucrative despite high prices, which ranged between KD 800 and 1,200 ($2,400-3,600) for every square meter.

Emad Haidar, vice-chairman of brokers’ union, said it was hard for prices to exceed a ceiling but even if they do, they would eventually re-adjust. Mansour Al-Osaimi, a real estate expert, said selling and purchasing activities in the housing, commercial and investment sectors were “good” in the first five months. However, he added, “We cannot ignore the fact that the investment sector was the hardest hit because of the coronavirus pandemic.” The vacancies in the investment sector will affect prices in the first half 2021, he said, and may extend until end of the year.

Meanwhile Faisal Al-Loughani, a broker, said prices of houses in what he called old areas were on the rise because of few supply and high demand. Fawzi Hamada, a real estate expert, said housing sector has been experiencing an unprecedented inflation since mid-2020. He said the real estate sector was facing many challenges including slow-pace distribution of housing lots and construction licenses coupled with high cost of construction materials, which contributed to high prices. – KUNA