Kuwait’s real estate sector registered a slowdown over the summer, with July seeing the lowest sales in four years, according to research published by the National Bank of Kuwait (NBK).

Real estate sales across all sectors in the country totaled KD 1.45 billion ($4.8bn) year-to-date, down 25% from the same period last year, the NBK economic report said. Sales in the residential and investment sector are down about one third from last year, while commercial activity is up for the year.

NBK’s real estate price indices for July continued to reflect an ongoing gradual correction that started in 2015, after a five-year stellar performance. The residential sales sector registered 196 transactions, down 26% for the month, while sales dropped to KD62.9 million, down 29% month-on-month. The residential sector continues to lag last year’s transactions and sales by 22% and 34% respectively, as seasonality continues to weigh on home sales, the research found.

The months of April and July this year were the weakest in five years in terms of both sales figures and number of transactions. The NBK residential home price index registered 163.6 points in July, staying relatively flat on the month but retreating by 10.9% year-on-year.

Single apartments (for investment) represented 64% of total transactions. Total sales for the sector were KD61m, half the sales recorded in July of last year. The sector registered 86 transactions, the lowest on record for the month of July in 10 years.