Kuwait witnesses a sharp rise in its real estate prices, mainly due to an unreasonable high price of lands, the official KUNA news agency reported on Saturday.

The Professional Real Estate Company said in a weekly report that all the lands in Kuwait are considered unreasonably high compared with other member countries of the Gulf Cooperation Council (GCC).

Lacking of lots that are authorized for construction and development results in the fact that the supply of real estate is much less than the demand, it said.

In addition, the prices of construction materials have also been rising over the past few years. As a result, Kuwaiti investors will face high prices of both land lot and construction material.

The company said high prices of real estate could be main obstacle for Kuwait's economic development, especially with the increase of population, adding that many local investors were forced to rather look to the international real estate market.

Source: Xinhua