Concerns on interest rate hike:

Real estate developers have expressed concerns over the situation where Central Bank of Kuwait has followed the decision of US Federal Reserve to raise the interest for 2016, reports Al-Anba daily.

A real estate source said the decision to increase interest will reduce revenues in the sector, particularly investment apartments. He also said the effect will not be felt so much in the market if the Central Bank raises interest from 0.25 percent to 2.25 percent, but its consistency will attract negative increase effect of 1 percent.

He stressed that real estate investors will pay higher, and eventually reduce their revenues, ruling out a possible rapid decline in prices and deals since the market is already weak. He noted high interest rate over deposits could push investors toward banks.