Local Real Estate Market – November 2019

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 November 2019 versus October 2019 liquidity. Total value of contracts and agencies traded during November scored KD 238.7 million, 6.9% higher than its counterpart value in October 2019 which was at KD 223.4 million, but lower by -19% when compared with November 2018 liquidity that totalled KD 294.6 million.

Trading during November 2019 was distributed between KD 233.4 million to contracts and about KD 5.4 million to agencies. Number of real estate deals in this month were 490 deals, of which 474 contracts and 16 agencies. The highest share   in   real  estate  deals  went  to  Al Ahmadi Governorate by 160 deals representing about 32.7% of the total number  of  real estate deals. Mubarak Al Kabeer Governorate came second with 120 deals representing 24.5%. While the lowest share went to Al Jahra Governorate by 33 deals, representing about 6.7% of the total.

Value of private residential activity scored KD 119.6 million, rising by 6.4% compared with KD 112.4 million in October 2019. While its contribution percentage decreased slightly to 50.1% of the total real estate trading versus 50.3% in October 2019. The monthly average value for private residence trading in the last 12 months scored KD 129.8 million. This means that November  trading  value was lower by -7.9% than the average. The number of deals for this activity was at 363 deals versus 335 deals in October 2019. Accordingly, the average value of private residence activity deal registered at KD 330 thousand versus KD 336 thousand in October 2019, a decrease by -1.8%.Value of investment housing activity scored   KD   58.5   million,   lower  by  -47.1% from KD 110.6 million in October 2019. Its contribution to total liquidity decreased to 24.5% versus

49.5% in October 2019. Monthly trading average value of investment housing activity during the last 12 months scored KD 109.2 million. This means that trading value during November 2019 was lower by -46.5% compared with the last 12 months’ average. Moreover, its deals increased to 114 deals compared with 98 deals in October 2019. Therefore, the average value per deal for investment housing scored KD 513 thousand versus KD 1.1 million in October 2019, representing a decrease by -54.5%.

Commercial activity trading value increased greatly to KD 59.2 million or by 15687.8%, compared with KD 375 thousand in October 2019. Its percentage out of total real estate trading value rose to 24.8% in November versus 0.2% in October 2019. Average value of commercial activity trading in 12 months scored about KD 58.6 million. This means that total trading value in November was higher by 1% than the last 12 months’ average. However, its deals scored 12 deals compared with 8 deals for October 2019. The average value per deal for November 2019 scored KD 4.9 million versus KD 47 thousand average for October 2019, a 10425.2% increase.When comparing total November 2019 trading with November 2018, we note that real estate markets liquidity decreased from KD 294.6 million to KD 238.7 million, a -19% decline as mentioned previously. The decline included the investment housing activity

by -67.5%, while the commercial activity rose by 497.3% and the private residence by 14.4% compared to their levels in November 2018.If we compare total real estate trading value since the beginning of the current year until November 2019 with its 2018 counterpart, we note a drop in total real estate market liquidity from KD 3.110 billion to KD 3.062 billion, a -1.5% decline. If we assume that market liquidity will continue at the same level for the remainder of the year (1 month), market trading value would amount to KD 3.340 billion, which is KD 291.2 million lower than the total for last year, representing a -8% decline below 2018 level which scored KD 3.631 billion.