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Real-estate business grow more than 33 percent — report

KUWAIT, June 27 (KUNA) — Number of transactions in the real-estate sector increased by 33.5 percent during the January-May period of 2012 compared with the same period of 2011, according to a statistical report released by Kuwait Financial Centre (Markaz) on Wednesday.
Value of transactions grew 10.2 percent year-on-year (Y-o-Y). In May-12, number of deals declined 35.8 percent Y-o-Y and 56 percent month-on-month (M-o-M). Value of the dealings dropped 24.6 percent Y-o-Y and 45.1 percent M-o-M.
Separately, administrative procedures for allocation of 7,400 private residential units (600 sq.m each) west of Abdullah Al-Mubarak and, 52,625 units north of Subbiya (400 sq. m each) have been completed. Procedures for an additional allocation of 48,000 private residential units were underway.
In Dubai, credit rating agency Fitch noted stability in the industrial and office rents in JAFZ (Jabal Ali Free Zone) and expects rental stability to flow from a high land lease renewal rate, as c.80 percent of the companies have been operating since January 2007.

Fitch also observed high occupancy rates in the free zone, with 79 percent of leasable land, 90 percent of warehouses, 78 percent of offices and 88 percent of onsite residential accommodation being occupied as of Dec-11.
Although the agency expects the free zone’s business to be less volatile compared to the overall office market in the emirate, they expect the short-term nature of rental contracts at JAFZ, with c.60 percent of the rents contracted for one year and, oncoming supply of rental properties to have an impact on the free zone’s earnings.
In the UAE: Institute of International Finance (IIF) estimates real GDP growth to slow down to 2.8 percent Y-o-Y in 2012 and 3.2 percent in 2013 from 4.2 percent in 2011, primarily due to steep decline in growth of crude oil output.
In Qatar, NAI Qatar in its latest monthly release indicated that residential rentals remained largely stable on M-o-M basis. Rentals for furnished units increased 0.5 percent M-o-M, while those for unfurnished units edged down 2.1 percent M-o-M.
On Y-o-Y basis, a prominent downtrend in rentals could be noted, barring those for three-bedroom furnished and one-bedroom unfurnished apartments. Furnished villas led the decline with a 6.9 percent Y-o-Y correction.

Kuwait News Agency, Jun 27 2012

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