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 October 2019 versus September 2019
liquidity. Total value of contracts and agencies traded during October scored KD 223.4 million which was a -32.1% decrease than its counterpart value in September 2019 which was at KD 328.9 million, also lower by -27.1% when compared with October 2018 liquidity that totalled KD 306.5 million. Trading during October 2019 was distributed between KD 210.5 million to contracts and about KD 12.9 million to agencies. Number of real estate deals in this month were 441 deals, of which 416 contracts and 25 agencies. The highest share in real estate deals went to Al Ahmadi Governorate by 137 deals representing about 31.1% of the total number of real estate deals. Mubarak Al Kabeer Governorate came second with 105 deals representing 23.8%. While the lowest share went to Al Jahra Governorate by 28 deals, representing about 6.3% of the total.Value of private residential activity scored KD 112.4 million, declining by -23.2% compared with KD 146.5 million in September 2019. While its contribution percentage increased to 50.3% of the total real estate trading versus 44.5% in September 2019. The monthly average value for private residence trading in the last 12 months scored KD 128.6 million. This means that October trading value was lower by -12.6% than the average. The number of deals for this activity was at 335 deals versus 423 deals in September 2019. Accordingly, the average value of private residence activity deal registered at KD 336 thousand versus KD 346 thousand in September 2019, a decrease by -3.1%.
Value of investment housing activity scored KD 110.6 million, higher by 7.2% from KD 103.1 million in September 2019. Its contribution to total liquidity increased to 49.5% versus 31.4% in September 2019. Monthly trading average value of investment housing activity during 12 months scored KD 119.4 million. This means that trading value during October 2019 was lower by -7.4% compared with the last 12 months’ average. Moreover, its deals decreased to 98 deals compared with 127 deals in September 2019. Therefore, the average value per deal for investment housing scored KD 1.1 million versus KD 812 thousand in September 2019, representing an increase by 38.9%.Commercial activity trading value decreased greatly to KD 375 thousand or by -99.5%, compared with KD 75.9 million in September 2019. Its percentage out of total real estate trading value declined to 0.2% in October versus 23.1% in September 2019.
Average value of commercial activity trading in 12 months scored about KD 54.5 million. This means that total trading value in October was lower by -99.3% than the last 12 months’ average. However, its deals scored 8 deals compared with 38 for September 2019. The average value per deal for October 2019 scored KD 47 thousand versus KD 2 million average for September 2019, a -97.7% decrease.
When comparing total October 2019 trading with October 2018, we note that real estate markets liquidity decreased from KD 306.5 million to KD 223.4 million, a -27.1% decline as mentioned previously. The decline included the commercial activity by -99.2% and private residence activity by -24.7%, while investment housing activity rose by 6.2% compared to their levels in October 2018.
If we compare total real estate trading value since the beginning of the current year until October 2019 with its 2018 counterpart, we note an increase in total real estate market liquidity from KD 2.815 billion to KD 2.823 billion, a 0.3% growth. If we assume that market liquidity will continue at the same level for the remainder of the year (2 months), market trading value would amount to KD 3.388 billion, which is KD 243.7 million lower than the total for last year, representing a -6.7% decline below 2018 level which scored KD 3.631 billion.