According to the Ministry of Justice available data -Real Estate Registration and Authentication Department- (after excluding crafts activity and the coastal strip system), real estate market liquidity of 2019 totaled to KD 3416 million, or a -5.9% decrease compared to 2018 liquidity level when it scored KD 3631 million. The liquidity of the second half of 2019 was KD 1715 million which was slightly higher than that of the first half of the same year which scored KD 1701 million. As the two amounts were almost equal in the two halves, it is not possible to conclude its trend for the beginning of 2020.
The above graph shows the performance of the domestic real estate market for 15 years. The real estate market started the decline in 2005 when liquidity level was at KD 2231 million, relatively weak liquidity, but the stock market was active then. Market liquidity began to improve in 2006 and scored KD 2729 million though it was a correction year in the regional stock markets and Boursa Kuwait. It continued to rise in 2007 and recorded about KD 4447 million. But it soon declined once again in 2008, the global financial crisis year, and the decline continued in 2009 and liquidity achieved its lowest since 2005 and scored about KD 1878 million. Then it recovered again in 2010 and this recovery lasted until 2014 and achieved its highest level for the period 2005-2019 at KD 4992 million. Then the level of liquidity began to decline in 2015, the year of the sharp
decline in oil prices and liquidity scored KD 3318 million. This liquidity decline continued in 2016 to KD 2493 million, in the year when oil prices reached their lowest levels. The decline extended until 2017 despite the improvement in the level of oil prices at that time and market liquidity scored KD 2382 million. Liquidity rose once again to KD 3631 million at the end of 2018, only to decline to KD 3416 million in 2019.
Private housing activity liquidity rose by 13.6% in 2019 versus 2018. Total liquidity of both contracts and agencies scored about KD 1571 million and their relative contribution to market liquidity amounted to 46% (38.1% in 2018).
Investment housing activity liquidity dropped to KD 1213 million and the percentage of its contribution to market liquidity dropped to 35.5% (45.5% of market liquidity in 2018). Liquidity of the investment housing activity dropped by -26.6% compared to 2018. Private and investment housing activity accounted for 81.5% of the real estate market liquidity in 2019, leaving about 18.5% of liquidity to the commercial and warehouse activity. Commercial activity trading increased to KD 619.2 million, rising by 7.2% and its contribution of total market liquidity increased to 18.1% in 2019 (15.9% of market liquidity in 2018).The average value per deal at the end of 2019 for private housing increased to KD 332.3 thousand, increasing from KD 320.2 thousand in 2018. While the average value per deal for investment housing activity decreased to KD 824.9 thousand down from about KD 922.3 thousand. Likewise, the average value per deal in commercial activity decreased significantly to KD 1.312 million down from KD 4.377 million in 2018. The overall average value per deal in the entire real estate sector trading decreased by -11.9% in 2019.