PHOTO
01 March 2015
Manama - Following the decision by Bahrain's government in February 2015 to formalise the rights of tenants and landlords through the introduction of a formal tenancy registration process, along with new legislation around the development of new real estate schemes, it has now been announced that the government will oversee the completion of stalled residential projects. This is expected to significantly bolster investor confidence in the Kingdom, according to leading international real estate consultants Cluttons.
In February, the government began enforcing the registration of tenancy agreements, marking the first time the rights of tenants and landlords have been formalised in writing. Additionally, the new requirement for developers to obtain a license prior to seeking planning approval and an anticipated ruling on the formal registration of all off plan property sales are adding to the confidence boosting measures being spearheaded by the government. Furthermore, it comes at a time of rising national stability, as the national residential and commercial markets stabilise as confidence levels grow in Bahrain.
Cluttons' head of Bahrain and Saudi Arabia commented, "This is certainly another very positive step in the right direction. The government's actions will no doubt translate into increased confidence levels and heightened investor interest, which will directly benefit headline projects such as Dragon City and The Courtyard.
"While it is unclear how the stalled residential projects have been selected, projects such as the iconic Villamar development in Bahrain Financial Harbour are being tackled through the engagement of Gulf Finance House and Saudi based Al Rajhi Bank, we can see that there is strong underlying commitment from the authorities to those who are heavily invested in projects that have been on hold for a number of years."
A further nine residential projects are expected to see a resumption in work this year, with Amwaj Gateway Towers, Marina West and Riffa Views all earmarked for completion.
Cluttons' international research and business development manager, Faisal Durrani added, "The government's intentions are clear and the timing is near perfect. Bahrain's residential market is enjoying a period of exceptional stability, with rental value growth coming in at roughly 1-1.5% each quarter for the past 18 months or so. From an investors' perspective, the stability has a tremendous draw, particularly in a market that is starting to find its feet again."
Durrani concluded: "The stalled projects listed by the special committee, that have been ear marked to be pushed over the finish line, have been lying dormant, tantalisingly close to completion, for a number of years. Not only have these served as a constant reminder of the recent challenges faced by the real estate market across Bahrain, but they have been a source of financial distress for both domestic and international investors. The decisive announcement to now complete some of the stalled landmark schemes sends out a clear message to the international investment community - 'it's business as usual for Bahrain once more and we are more investor friendly than ever before'."
-Ends-
About Cluttons LLP
Cluttons LLP is an independent partnership of chartered surveyors founded in 1765, with a network of offices in the Middle East, Europe, and South Africa. In the Middle East offices are located in the United Arab Emirates, Oman and Bahrain.
Cluttons LLP offers a wide range of professional property management, agency and consultancy services across the commercial and residential sectors, for both investors and occupiers.
For further information, please see: www.cluttons.com
Media contact:
Aindreas Doyle
Edelman
+971566652045
aindreas.doyle@edelman.com
Manama - Following the decision by Bahrain's government in February 2015 to formalise the rights of tenants and landlords through the introduction of a formal tenancy registration process, along with new legislation around the development of new real estate schemes, it has now been announced that the government will oversee the completion of stalled residential projects. This is expected to significantly bolster investor confidence in the Kingdom, according to leading international real estate consultants Cluttons.
In February, the government began enforcing the registration of tenancy agreements, marking the first time the rights of tenants and landlords have been formalised in writing. Additionally, the new requirement for developers to obtain a license prior to seeking planning approval and an anticipated ruling on the formal registration of all off plan property sales are adding to the confidence boosting measures being spearheaded by the government. Furthermore, it comes at a time of rising national stability, as the national residential and commercial markets stabilise as confidence levels grow in Bahrain.
Cluttons' head of Bahrain and Saudi Arabia commented, "This is certainly another very positive step in the right direction. The government's actions will no doubt translate into increased confidence levels and heightened investor interest, which will directly benefit headline projects such as Dragon City and The Courtyard.
"While it is unclear how the stalled residential projects have been selected, projects such as the iconic Villamar development in Bahrain Financial Harbour are being tackled through the engagement of Gulf Finance House and Saudi based Al Rajhi Bank, we can see that there is strong underlying commitment from the authorities to those who are heavily invested in projects that have been on hold for a number of years."
A further nine residential projects are expected to see a resumption in work this year, with Amwaj Gateway Towers, Marina West and Riffa Views all earmarked for completion.
Cluttons' international research and business development manager, Faisal Durrani added, "The government's intentions are clear and the timing is near perfect. Bahrain's residential market is enjoying a period of exceptional stability, with rental value growth coming in at roughly 1-1.5% each quarter for the past 18 months or so. From an investors' perspective, the stability has a tremendous draw, particularly in a market that is starting to find its feet again."
Durrani concluded: "The stalled projects listed by the special committee, that have been ear marked to be pushed over the finish line, have been lying dormant, tantalisingly close to completion, for a number of years. Not only have these served as a constant reminder of the recent challenges faced by the real estate market across Bahrain, but they have been a source of financial distress for both domestic and international investors. The decisive announcement to now complete some of the stalled landmark schemes sends out a clear message to the international investment community - 'it's business as usual for Bahrain once more and we are more investor friendly than ever before'."
-Ends-
About Cluttons LLP
Cluttons LLP is an independent partnership of chartered surveyors founded in 1765, with a network of offices in the Middle East, Europe, and South Africa. In the Middle East offices are located in the United Arab Emirates, Oman and Bahrain.
Cluttons LLP offers a wide range of professional property management, agency and consultancy services across the commercial and residential sectors, for both investors and occupiers.
For further information, please see: www.cluttons.com
Media contact:
Aindreas Doyle
Edelman
+971566652045
aindreas.doyle@edelman.com
© Press Release 2015
