Characteristics of real estate market in Bahrain

The real estate sector in Bahrain manipulates a great deal of significance from the Bahraini government. A report issued by Mazaya Real Estate Co. mentioned that the continuous follow up from the Bahraini government to the real estate market bolsters its performance and increases its cohesion.

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Real estate market components

Hence real estate sits on the top of the economic sectors in Bahrain and enjoys a massive influx and concern as it is open to foreign investments same as many other GCC states.

The real estate market in Bahrain witnessed a significant activity during the latter year reflecting purchasing and investment attraction in Bahrain. About 1.2 billion dollars was the value of real estate market in Bahrain during the last year. Market figures and statistics ensured its strength, for example: properties deals value hike by 44% during the first half of 2014 compared with the same period in 2013.

Bahrain government concern with the economic performance in general and the real estate sector in specific had a positive effect on foreign investments rates in the kingdom. 122 billion dollars was the value of domestic and foreign investments in Bahrain, the biggest portion of these investments poured in real estate sector.

The unique location in the heart of the Arabian Gulf, economic efficacy on all scales, political stability, all stood as contributing factors in attracting more foreign investments to exploit one of the highest properties revenues margins hitting 12% last year.

Real estate investments predictions

Bahrain witnesses an invigorating construction tide in all real estate sectors which reflects the market ripeness and surpassing the financial crisis of 2009. The hospitality sector for instance is developing by quick pace. The opening of Bahrain Gulf Four Seasons hotel stood as a clear example for that, Bahrain Gulf is the fourth branch of the international Four Seasons in the gulf area after Riyadh, Dubai and Doha.

More hotels are expected to be inaugurated in the coming period after the high rates of tourists’ inflow and the high occupancy rates of five-star hotels rising by 53.5% during 2014.

Bahrain will witness more projects on other real estate scales like Al Tenen (The dragon) City Mall and the new residential towers in the lofty island of Amwaj. These projects come as a part of Bahrain 2030 vision plan launched in 2008 targeting diversifying income sources and comprehensive development of economic realty in the kingdom.

Bahraini government tries through a number of channels to organize the real estate market. Central Bank of Bahrain studies the stumbling projects status, their financial and legislative conditions in order to finding a way for solving the situation.

Also the government developed a set of laws regulating the real estate market like the real estate brokerage act, rents law, real estate development law in sake of improving the market framework. Organizing the market through flexible and deterrent laws will develop the market’s rank.

see also:

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Comparison between the biggest real estate markets in the region (Infographic)

Stock Market vs. Real Estate

Stumbles on the way

Prosperity trek is not paved, it’s fraught with dangers and risks facing all promising and emerging states. Oil crisis forms one of those risks facing Gulf States.

The crisis resulting from the oil prices recession played in favor of real estate investment in GCC and Bahrain. Properties rose as a perfect alternative for investment instead of oil market where lucrative and easy profiting is insurable. To get to know more about the oil crisis and its effect on real estate market you can visit our page here.

Rising demand is another risk facing the market in Bahrain as new housing plans issued lately have no chance in quenching the market thirst for more houses. Experts implied that the current supply can fulfill only 20% of the demand.

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