Kuwait's real estate market witnessed a turnaround in November as sales volumes of transaction reached the highest level since July.

A total of 515 transactions were registered at a value of KD136.6 million (Dh1.82 billion), while transactions rose 77 per cent month-on-month(MoM). Sales volumes rose 43.8 per cent MoM compared to a year ago, a report by National Bank of Kuwait said.

The bank said growth was led by the residential sector, which saw sales volume and the number of transactions surge by 100.7 per cent and 117 per cent, respectively, though apartment and commercial property sales were also up notably.

The residential segment accounted for most of the activity in the real estate market, representing 47 per cent of the total volume of sales and 66 per cent of the number of transactions, during the month.

The Ahmadi governorate hosted most of the transactions involving the residential properties during the month with 56 per cent of total number of transactions, while Hawalli governorate dominated the apartments and commercial properties with 49 per cent.

NBK reported that the first 11 months saw real estate sales fall by 34.7 per cent in sales volume and 34 per cent in number of transactions compared with the same period last year.

Most of the decline in sales occurred in the residential sector, where both sales volume and number of transactions saw a decline of 42 per cent.

Meanwhile, average transaction size for registered transactions during the 11 months fell by 23.8 per cent for apartments and commercial property and 0.3 per cent for residential property compared to same period last year.

According to NBK, Savings and Credit Bank (SCB) loans declined during November with the number and value of loans approved falling by 19.5 per cent and 16.7 per cent, respectively. SCB approved 404 loans in November versus a monthly average of 378 in 2007.

Compared with October, the number of loans approved for the purchase of existing homes rose by 19 per cent, while the construction of new homes and additions and renovations declined by 28.7 per cent and 22 per cent respectively.

Meanwhile, the value of loans disbursed rose by five per cent to KD13m, though loans disbursed thus far in 2008 are 20 per cent under amount disbursed during the same period last year.