KFH Executive Manager – Real-estate Valuation, Ahmed Al-Farhan said that Kuwait Finance House (KFH) has valuated 16358 real estates during 2021 for individuals, corporates, banks and government institutions with a market value approximating KD 23.7 billion. He indicated that the real estate valuation department at KFH has gained the trust of several official authorities, legal bureaus, accounting offices, government bodies and individuals.

Al-Farhan emphasized in a press release that the valuation covered 7 types of real estates. Private residence has taken the lead by 42%, investment real estate came second with 30%, followed by industrial and handcraft plots by 13%, ownership units and chalets by 10%, commercial real estate, B.O.T projects, hotels, medical clinics 5% in the valuated real estate sequence. Various executed, yielding and under construction projects were also valuated.

Al-Farhan reiterated that KFH has adopted international standards including cost, rate of return, common sale price, and local traditions for the valuation of all types of real estates based on organizational opinion and usage. The valuation is conducted by highly distinguished group of engineers and specialized and highly experienced Valuators accredited by the Ministry of Commerce & Industry. He highlighted the major significance of real estate valuation activity for economy, capital market performance towards real estate and investment companies, reservation of shareholders rights at KFH, providing services to other listed and unlisted companies and banks, and arbitration among individuals. Real estate is considered as one of the valuable assets and one of the main investment fields.

Al-Farhan praised the interest and concern which the Central Bank of Kuwait, Ministry of Commerce and Industry and Capital Markets Authority showed towards the follow up of the development process of real estate valuators and the valuation activity itself. The banking association has organized training courses to enhance valuators’ skills and develop their performance and awareness of the latest real estate valuation standards regionally and globally, thus enhancing the significance of this profession and its role in the national economy movement.

He said that “KFH” is also interested in developing the real estate valuation activity by employing specialized engineers and employees and organizing comprehensive training courses for the valuators team. The trainees get “International Valuator” Certificates. Also, it seeks to expand the valuation fields to include new qualitative activities e.g., hospitals, factories and others through cooperation with highly specialized and experienced companies and entities in the field of real estate assets valuation. Accordingly, KFH would be able to valuate all types of real estates be it residential, commercial, investment, agricultural, hotels, entertainment facilities, B.O.T projects, usufruct rights and others, through a professional service which is based on expertise in the real estate field, trust, impartiality, and transparency in decision making.

He added that KFH is an accredited valuation entity supported by a huge data base and a highly skilled technical team “engineering, legal and accounting” which conducts its functions based on administrative and engineering reports and market development follow up. This process renders the department able to present the best prices as per an approved official price list and the highest levels of performance and excellence. Accordingly, KFH has become the most favorable valuation destination for major companies, institutions, high value and multiple usage real estates and for individuals in cases of inheritance, litigation and exits. He expressed his trust that the real estate valuation department will surely develop more considering the great interest which executive management has expressed in developing the valuation functions and the growth of this industry which is important to the real estate market.

Regarding the real estate valuator’s qualification, Al-Farhan said that “The valuator should have integrity, impartiality, ability to analyze, knowledge of construction laws, full awareness of the real estate market and developments, sufficient experience in trading, market drives and the advantages of each area and qualities of each real estate”. He indicated that help may be sought from certain specialized companies in this field to obtain consultation and technical opinion so that real estate valuation would be perfectly complete including construction, maintenance, rent returns and others”.