Overview of Real Estate Markets in Kuwait

Authors: Olga Kaganova, Fawzi Al-Sultan and John Speakman

Start Page: 287
End Page: 302
Volume: 13
Issue Number: 3
Year: 2005
Publication: Journal of Real Estate Literature

Abstract: This paper provides insights on the real estate market in Kuwait. A number of market
distortions and imbalances are identified and their likely implications for the economy are discussed. The dynamics of prices on land and various types of completed buildings are also discussed. It argues that the high prices typical for single-family houses and some non-residential properties are driven up by: (1) high effective demand from families for investment outlets; (2) high social value attached to living in detached houses, which is supported by the current governmental housing policy; and (3) limited access to non-residential land by the private sector. The conditions for private investment in non-residential development, including existing constraints for non-Kuwaitis and international developer/ investors, are also reviewed.