Kuwait real estate sales 24 per cent up year-on-year in May: NBK

Kuwait’s real estate market booming and sales in May were almost one-quarter higher than in the same month of 2013, according to the weekly economic report by the National Bank of Kuwait (NBK).

“Sales were up from a year ago, across all sectors,” NBK said. “Sales were up 30 per cent in the first five months of the year compared to the same period in 2013.”

It said sales in the residential sector reached KD 170 million in May, a 15 per cent year-on-year increase.

Kuwait is benefitting from high oil prices and buoyant demand for oil exports. Fitch Ratings last week affirmed Kuwait’s long-term foreign and local currency issuer default ratings (IDR) at AA with a stable outlook.

“Kuwait’s exceptionally strong sovereign balance sheet is the key support for the ratings,” Fitch said in a statement. “Very high per capita oil exports have consistently generated large fiscal and current account surpluses.”

“Fitch estimates that sovereign net foreign assets rose to 200 per cent of GDP at end-2013, the strongest of all rated sovereigns, and the net creditor position rose to 44 per cent of GDP,” Fitch said. “Both are expected to improve over the forecast period.”