7 reasons that contribute to the real estate delivery delay in Bahrain

Despite being a stable market unlike neighbouring countries, but the real estate market in Bahrain faces delays when it comes to the real estate delivery delay of various projects.

These delays cause severe problems between developers and buyers which might get both parties settling their disputes before a court.

But before jumping ahead to conclusions, investors should be aware of the reasons that cause real estate delivery delay in some projects over others.

Some of this delays are excusable and others are inexcusable.

We rounded up a list of 7 reasons that contribute to real estate delivery delay in projects in Bahrain.

1- Delays in Construction

The construction process of any real estate project is subjected to get delayed by developers.

There are a lot of necessary permits and legal requirements that a developer needs to obtain first before proceeding with the construction process.

Ignoring the completion of all the legal requirements needed will eventually cause cascading delays in the delivering process.

Also, almost all developers sell their projects off-plan, which can also be a cause of the delay.

Developers can intentionally delay construction if they noticed that the off-plan sales are going at a slower pace than they expected.

Another delay that is caused by developers is that some use the profits generated from the off-plan sales to start another project.

Authorities are also one of the reasons that cause a delay in construction.

The time consumed to issue all the necessary approvals can affect the construction process.

2- Delay in architectural work

Architectural firms responsible for designing the project plans are also a part of delaying the delivery process.

The budget as well may cause the delay in architectural work.

While committing to several projects at once may also affect the agreed deadline.

However, the blame doesn’t only fall on architectural firms as developers might have amends to the designs of the project.

3- The Launch of Multiple under Construction Projects

As we mentioned earlier, when a developer launches many under construction projects at the same time, committing to agreed delivery dates can be sometimes hard to achieve.

Funding is the main problem here.

Developers using the proceeds of one project to launch the other will affect these entire projects delivery schedule.

4- Continuous change in real estate development laws

Real Estate laws are there to protect both developers and investors rights.

However, any change that occurs in a real estate law will require developers to add more steps before their project gets completed.

Hence, a delay in the delivery dates will occur.

Whether it is a change related to payment plans, additional permits needed or an update in land registration law, all of this will ultimately hinder the delivery process.

5- Third Parties Delays

Sometimes a subcontractor fails to live up to its commitments which affect the overall workflow of the entire project.

Any delay from material suppliers can also cause a delay throughout the developing process.

Developers will hire third parties who are specialised in their own fields, however, while expecting this to speed up the process of delivery; third parties might be the reason for this delay.

6- Climate Delays