A recent report issued by the Kuwaiti Real Estate Bank, entitled "Future Expectations Regarding Real Estate Sector in 2005" expects a negative correction in prices of lands for investment, since initial indications show that these prices hit their highest level.
Quoted by the Kuwaiti newspaper, Al-Watan, the report mentioned also the negative effect of the new municipal limitations regarding roads and parking lots areas. As for the commercial and office buildings sector, which was calm for a long time, it is expected to face an increase in demand, as a result of the current expansion of existing companies, the establishment of many new companies, the allowance to foreign banks to operate in Kuwait, and the activity of the new Bubiyan bank.
As for the housing sector, the report mentioned that there are still a huge number of requests for private housing. In addition, supplying infrastructure for regions which were lacking it before, contribute to the rise in the prices of the land plots for housing. On the other hand, these prices were curbed by the tendencies of the Central Bank regarding the interest rate and shortening the period for loan redemption. The offered governmental housing projects are expected to increase the offer and to stable the prices, thus balance between offer and demand is projected in this sector, probably with negligible increase in the prices.
