Date : 27 Feb,2021

Real estate experts have confirmed that the Corona pandemic has hit the investment sector, and reducing rents has become a haven for many real estate owners whose monthly revenues have been affected as a result of the decline and shrinkage of demand and high vacancy rates.

They told Al-Qabas that apartment rents in some areas decreased dramatically, by more than 30%, as the rent for the two-room apartment with electricity and water reached 160 dinars only, noting that the decrease in rents in some areas has become on a weekly basis, and they called on banks to The necessity of prudence towards real estate owners before deciding to liquidate their mortgaged properties, with the aim of preserving the cohesion of the market and ensuring its stability.

The Secretary of the Real Estate Union, Qais Al-Ghanem, said that the price drop in the investment property has become tangible at a weekly pace, and the reduction of rents has become a haven for many landlords who have become narrow and affected their returns in light of the weakness and shrinkage of the tenant segment recently. The future of the sector does not bode well, and the vision will become clearer by next March, even if there will be a reverse migration of expatriates, especially at the level of families and not singles.

For his part, the consultant and economic researcher Amer Dhiab Al-Tamimi said that in light of the current developments in Kuwait due to the Corona pandemic and its unfavorable repercussions on the performance of various economic sectors, the real estate sector in general has been affected, and there is no doubt that the investment property has been affected by many factors, including dispensing There are a number of companies and institutions on behalf of workers, and those workers have failed to pay rent dues for the apartments they inhabit, or to deport their families to their countries and move to reside in apartments for singles or leave the country permanently.

For his part, the General Manager of Youssef Khaled Al-Omar Real Estate Corporation, Youssef Al-Omar said: It is known that joint stock companies are obliged at the end of each year to evaluate their assets for the purpose of preparing financial statements, and there is no doubt that the Corona crisis affected this evaluation, which led to its reflection on The financial data of the companies, and the evaluation did not affect the companies significantly, and the decline was approximately in the range of 5% to 6% for investment and commercial real estate, while the rest of the sectors were not affected.
Source:
Al Qabas Economic