Competitive prices, protection laws lure foreign funds into property sector
The Kingdom's booming real estate sector, competitive prices of land, adequate laws ensuring protection to foreign investments and low inflation will continue to attract foreign direct investment (FDI) beyond 2007-08.
Bahrain's strategic location and skyrocketing rents in the neighbouring GCC countries have also played a major role in convincing the regional and global companies to relocate their head offices to Manama creating a huge demand for both domestic and commercial properties, a leading real estate investor said yesterday.
Ahsan Inam Khan, Executive Director, Landmark Properties, said that the Property Arabia and the Worldwide Property Show 2007 being held at the Bahrain International Exhibition Centre had drawn a huge interest from investors from across the region.
Ahsan Khan, who decided to invest in Bahraini real estate sector two years ago, was convinced that in the backdrop of huge appetite for commercial and domestic properties Bahrain will dominate other countries in this sector.
Ahsan Khan talking about Marvida Tower being developed by Landmark Properties said that they had sold out most of the available units. "We have sold out almost all units expect few units and now the focus is on other upcoming properties. This is a very good response and the number of visitors is growing every day. We hope that the show will be a great success."
Ahsan said that his company would soon launch another 22-storey property in Juffair with total number 96 units. "This project will offer units for mid-range buyers with a tentative timeframe to finish within 20 months from the launch expected to be in mid-November.
"We are very much impressed with overall investment climate in Bahrain and are serious to invest about BD120 million in various real estate projects over the next two to three years. The laws and regulations, including freehold property, are very clear except builders face problems in getting construction license. We hope the authorities will look into this aspect of real estate sector as the booming real estate sector in the Kingdom needs all support from the authorities including getting license for a construction company."
Our company is keen to enter the low incoming housing sector, he said, adding that this segment of the real estate sector has a potential of over 60,000 units. "We are expecting that there will be definite demand of housing units for low income strata ranging between 50,000 to 60,000 units in the next couple years."
The demand of affordable housing units has further fuelled by the mortgage facilities being offered by the banks in Bahrain. The availability of loans and mortgages has made it possible for low to mid level income residents and locals to buy and own a house."
"We are planning to launch villas ranging between BD 55,000 to BD 65,000 in various areas of the Kingdom. These units will be handed over to the owners within a record time of eight months as construction of an independent unit is much easier faster unlike tall buildings."
This year at the Property Arabia and the Worldwide Property Show 2007 approximately $20 billion worth of real estate local real estate development projects are taking part.
The organisers expect turnover of visitors to exceed 5000 offering an excellent opportunity to investors and developers to meet under the same roof. The last edition of Property Arabia attracted 4437 private and corporate investors, over 30 per cent of which came from outside of Bahrain.
Mahmood Rafique
© Bahrain Tribune 2007
