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Kuwait Real Estate Sector to Slow in '09
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Kuwait's real estate sector is poised for a slowdown in 2009 with rents falling as financing is tightening in the wake of a global credit crunch, ...
TITLE: Kuwait's real estate sector is poised for a slowdown in 2009 with rents falling as financing is tightening in the wake of a global credit crunch, local investment bank Global Investment House said.
Construction activity in Kuwait, whose real estate sector is off limits to foreigners except Gulf Arabs, will be facing weaker demand in the residential sector, Global said in a research note.
"(The) apartments market might see a rental correction of 15 percent during 2009-10," Global said.
In the commercial real estate sector, firms are seen cutting office space as well as staff which might push the vacancy rate up to 40 percent in 2009.
Kuwait's real estate sector is poised for a slowdown in 2009 with rents falling as financing is tightening in the wake of a global credit crunch, local investment bank Global Investment House said.
Construction activity in Kuwait, whose real estate sector is off limits to foreigners except Gulf Arabs, will be facing weaker demand in the residential sector, Global said in a research note.
"(The) apartments market might see a rental correction of 15 percent during 2009-10," Global said.
In the commercial real estate sector, firms are seen cutting office space as well as staff which might push the vacancy rate up to 40 percent in 2009.
"We expect (commercial) rentals to decline by 10 percent to 15 percent during 2009-10 mainly due to recession," the bank***s analysts said.
Kuwait***s real estate market saw a 31.8 percent decline in transactions in the first 11 months of 2008 compared to the previous year***s data, the bank said.
In addition to the credit crunch, Global said the real estate market is being hit by tougher consumer lending rules the central bank has imposed as part of efforts to fight inflation.
"Credit facilities extended to real estate sector continued to grow at a declining rate during 2008," Global said. - Reuters~~~~~~
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