Local Real Estate Market – January 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 an increase in real estate market liquidity during January 2020 versus December 2019 liquidity. Total value of contracts and agencies traded during January were at KD 357.9 million, a 1.1% increase than its counterpart value in December 2019 which scored KD 354.2 million, and liquidity increased by 31.9% when compared with January 2019 that totaled KD 271.4 million.

Trading during January 2020 was distributed between KD 301.8 million to contracts and KD 56.1 million to agencies. Number of real estate deals in this month scored 503 deals of which 470 contracts and 33 agencies. The highest share   in   real   estate   deals went to Al-Ahmadi Governorate by 136 deals representing about 27% of the total number of real estate deals. Mubarak Al-Kabeer Governorate came second by 112 deals and representing 22.3%. The lowest share went to Al Jahra Governorate by 31 deals, representing 6.2% of the total.

Value of private residential activity scored KD 142 million, lower by -14.9% compared with KD 166.9 million in December 2019. Its contribution percentage decreased to 39.7% of the total real estate trading versus 47.1% in December 2019. The monthly average value for private residence trading in the last 12 months scored KD 132.2 million. This means that January trading value is higher by 7.4% than the average. The number of deals for this activity decreased to 354 deals versus 471 deals in December 2019. Accordingly, the average value of private residence activity deal scored KD 401 thousand versus KD 354 thousand in December 2019, indicating a 13.2% increase.

Value of investment housing activity scored KD 105.1 million, lower by -14.8% from KD 123.4 million in December 2019. Its contribution to total liquidity decreased to 29.4% versus 34.8% in December 2019. Monthly trading average value of investment housing during 12 months scored KD 101.8 million. This means that trading value during January 2020 was higher by 3.3% compared with 12 months’ average. In addition, its deals increased slightly to 129 deals compared with 126 deals in December 2019. Therefore, the average value per deal for investment housing scored KD 815 thousand versus KD 979 thousand in December 2019, i.e. -16.8% decrease.

Commercial activity trading value rose to KD 105.3 million, or by 68.9% compared with KD 62.4 million in December 2019. Its percentage out of total real estate trading value rose to 29.4% compared with 17.6% in December 2019. Average value of commercial activity trading in 12 months scored KD 56.4 million. This means that total trading value in January was higher by 86.6% than the last 12 months’ average. Its deals totalled to 19 deals compared with 22 deals for December 2019. The average value per deal for January 2020 scored KD 5.5 million versus KD 2.8 million average for December 2019, a 95.9% increase.

When we compare total January 2020 trading with January 2019, we note that liquidity increased in the real estate market from KD 271.4 million to KD 357.9 million, i.e. 31.9% increase as mentioned previously. The increase included the liquidity of the commercial activity by 121.7%, private residential activity by 12.4% and investment housing activity by 9.1%.