Local Real Estate Market – February 2020

The latest released data by the Ministry of Justice -Real Estate Registration and Authentications Department- (after excluding the crafts activity and the coastal strip system) indicate a decrease in real estate market liquidity during February 2020 versus January 2020 liquidity. Total value of contracts and agencies traded during February were at KD 284.5million, a -20.5% decrease than its counterpart value in January which scored KD 357.9 million, and liquidity decreased by -1.9% when compared with February 2019 that totaled KD 290.1 million.

Trading during February 2020 was distributed between KD 280.4 million to contracts and KD 4.1 million to agencies. Number of real estate deals in this month were 477 deals of which 461 contracts and 16 agencies. The highest share   in   real   estate   deals went to Al-Ahmadi Governorate by 138 deals representing about 28.9% of the total number of real estate deals. Mubarak Al-Kabeer Governorate came second by 101 deals and representing 21.2%. The lowest share went to Al Jahra Governorate by 26 deals, representing 5.5% of the total.

Value of private residential activity scored KD 119.2 million, lower by -16% compared with KD 142 million in January. Its contribution percentage increased to 41.9% of the total real estate trading versus 39.7% in January. The monthly average value for private residence trading in the last 12 months scored KD 132.7 million, this means that February 2020 trading value is lower by -10.2% than the average. Number of deals for this activity increased to 361 deals versus 354 deals in January. Accordingly, the average value of private residence activity deal scored KD 330 thousand versus KD 401 thousand in January, indicating a -17.7% decrease.

Value of investment housing activity scored KD 61.2 million, lower by -41.8% from KD 105.1 million in January. Its contribution to total liquidity decreased to 21.5% versus 29.4% in January. Monthly trading average value of investment housing during 12 months scored KD 100.6 million. This means that trading value during February was lower by -39.1% compared with 12 months’ average. In addition, its deals decreased to 98 deals compared with 129 deals in January. Therefore, the average value per deal for investment housing scored KD 625 thousand versus KD 815 thousand in January, i.e. -23.4% decrease.

Commercial activity trading value dropped to KD 104 million, or by -1.2% compared with KD 105.3 million in January. Its percentage out of total real estate trading value rose to 36.6% compared with 29.4% in January. Average value of commercial activity trading in 12 months scored KD 56.7 million, indicating that total trading value in February 2020 was higher by 83.6% than the last 12 months’ average. Its deals totalled to 18 deals compared with 19 deals in January. The average value per deal for February scored KD 5.8 million versus KD 5.5 million average for January, a 4.3% increase.

When comparing total February 2020 trading with February 2019, we note that liquidity dropped in the real estate market from KD 290.1 million to KD 284.5 million, i.e. -1.9% decline as mentioned previously. The decline included the liquidity of the investment housing activity by -19.2%, while the private residential activity rose by 5.3% and the commercial activity by 2.9%.