Why is Bahrain going big on real estate?
With overall economic growth hovering around 3 percent in 2017, Bahrain registered the most vigorous growth among all Gulf Cooperation Council (GCC) nations. As government made many realistic efforts toward attracting more Foreign Direct Investments (FDIs) and diversifying the economy away from oil, real estate remains one of the key drivers in Bahrain’s robust growth.
In a recent report on Bahrain’s property market, Business Monitor International (BMI) has forecasted a steady growth in 2018.
“Government efforts to diversify the economy away from hydrocarbons have facilitated…new industrial zones that incorporate excellent amenities and access to key trade routes, part of a larger drive to position Bahrain as a regional hub for manufacturing and logistics,” said BMI. This “has fostered a rise in demand for bespoke industrial facilities from manufacturing and logistics tenants…as investment pours into developing a suitable environment.”
Housing demand to multiply
Bahrain is home to young and rapidly-growing population, which has high incomes and more purchasing power. Therefore, compared to neighboring GCC states, demand for housing is predicted to continue to exceed supply in the coming years in Bahrain. Particularly, Bahrain has seen a good demand for apartments that have witnessed a god push in sale prices over the last few years.
According to confirmed reports, two leading Indian developers have joined hands to deliver a $250 million project in Bahrain Bay Development to offer the tallest residential towers of Bahrain ‘The Golden Gate Towers’. This project consists of world class amenities, and 750 super luxury apartments with a wide range of options.
Moreover Bahrain government is also facilitating the smooth rise of the real estate sector in the tiny Gulf nation. The Real Estate Regulatory Authority (RERA), which was established in 2017, has shown keen commitment to support real estate growth by strengthening regulation, attracting global investors and maintaining consumers’ confidence.
Recently, at the Gateway Gulf event in Manama last month, many premium housing projects were showcased, ranging from social housing opportunities to innovative schemes in collaboration with the private sector for the provision of affordable housing (Mazaya).
According to the Bahrain News Agency (BNA), the statistics show that more than 2,650 citizens have purchased their housing units over the last four years thanks to the funding solutions provided by this (Mazaya) program. A total of BHD15 million has been provided in support of Mazaya beneficiaries in cooperation with the banks participating in the program. Real estate developers have also sought to offer housing at affordable rates for beneficiaries, through affordable finance. Interestingly Mazaya has helped to enhance the purchasing power of Bahrain nationals since its launch in October 2013.
“This is in addition to premium developments such as the $500 million Al Naseem, which is due to open tenders this quarter, and the $1.1 billion Hasabi development which will combine residential villas, apartments, retail, restaurants and education facilitates,” stated a report by BNA.