MANAMA: The size of the mortgage market in Bahrain reached $1.4 billion by the end of last month, making it one of the comparatively stable realty markets in the GCC (Gulf Cooperation Council).
"The completion of landmark projects like Amwaj lands, Durrat Al-Bahrain and many properties in Juffair has helped to keep the market at sustainable growth levels," said R. Lakshmanan, chief executive officer of Sakana Holistic Housing Solution.
Lakshmanan, who was talking to the media during the handing over ceremony of the $25 million Nasmah Freehold Tower, said despite the soft market conditions, the new projects were being announced by developers to meet the growing demand for new housing units.
Talking about overall market conditions, he said realty has shown a sign of recovery but 2010 would remain a challenging year for mortgage companies and developers.
"With the slump in the real estate market land prices have declined by 15 percent while investment land nosedived up to 60 percent in 2009. The prices of residential units have seen a 20 to 25 percent decline in prices across the board," he added.
Sakana, the innovative Islamic mortgage finance provider, announced the successful completion of its first project into property consultancy - the freehold, residential development Juffair-based tower Nasmah valued at $25 million. This freehold project was developed by RMK Projects, a division of R. M. Kooheji & Sons.
"Nasmah sales was Sakana's successful entry into property consultancy, Nasmah tower was completely sold out in the launch and it's now open to the secondary market and we are really proud to announce today the completion of this tower and delighted to deliver to our customers their dream home in affordable price and excellent quality," Lakshmanan said.
"Despite the economic slowdown and construction activity scaled down across the country and the region 'Nasmah' has progressed and completed. We would like to thank all our customers, contractors and suppliers for their continuous support and trust in our project," said Ishaq Al-Kooheji, president and CEO of RMK Projects.
"Nasmah which means a breath of fresh air in Arabic is an affordable freehold apartment tower consisting of 122, 2-bedroom apartments, each with a balcony and offering either city or seaside views.
"The building has a rooftop swimming pool, a fully-equipped fitness center, a squash court, event hall and other amenities," he added.
He said the group would also launch another housing project with an estimated cost of $25 million. "The Bahraini market is one of the most competitive housing markets in the GCC and that's why the demand has remained in the market despite the economic slump," he said.
By MAHMOOD RAFIQUE
© Arab News 2010
