Private residential land prices in Kuwait are seen rising by up to 10 per cent in 2010 while apartment prices are seen climbing by up to 15 per cent on an expected economic recovery, a report said on Wednesday.

Transactions in the country's property market are expected to depict a sustained revival in 2010 helped by economic and lending growth, Kuwait Financial Centre (Markaz).

'We expect moderate price recovery in the range of 5-10 per cent in this segment (private residential) as the economy bounces back, leading to demand for housing from the affluent,' it said.

Prices for private residential land plots, which cater for Kuwaiti nationals, fell by 20-30 per cent from peak levels in early 2008, the report said.

By 2015, demand for 64,000 more homes would be added to the 92,000 pending housing applications and more residential projects would be announced, it said.

Prices for apartments, which cater mainly for foreign residents, fell by as much as 30 per cent since early last year as the financial downturn led many foreigners to leave the country, and resulted in a shortage of home financing.

Office prices are expected to decline a further 15-20 per cent from current levels due to the release of further supply, it said.

'The office segment in Kuwait is comparable to Dubai in terms of higher current vacancies and a short term future marked by a spurt of supply. However, the economy of Kuwait is in much better shape than that of Dubai.'

Office prices fell by 25-50 per cent from its pre-crisis peak at the start of 2008 due to oversupply, which is comparable to the average price fall in Dubai, it said. – Reuters