Watchdog plans national strategy for real estate reforms in Bahrain

PHOTO

Bahrain - A national strategy to regulate the real estate sector in Bahrain is one of the top priorities of a newly established watchdog, according to its top official.

The aim is to put in place a system of proper licensing and regulations that would prevent incidents of stalled projects.

However, the existing stalled projects will be outside the remit of the Real Estate Regulatory Authority (Rera) which is set to start operations from tomorrow.

The authority was set up in October last year by His Majesty King Hamad to improve real estate regulations and stimulate investment opportunities in the sector.

“The setting up of Rera marks a new era in the field of real estate sector in Bahrain,” said chief executive Shaikh Mohammed bin Khalifa Al Khalifa.

“It will be a new beginning with a system in place and a national strategy to ensure proper licensing and regulations,” he said.

“However, Rera will not be responsible for the stalled projects in Bahrain which is currently under a different authority.

Licensing

“Rera aims at a change, towards an environment of best practices in the sector – a better environment for everybody to purchase, develop and sell land.”

Most of the stalled projects come from issues related to land sales.

“If we have proper escrow accounts in place and proper licensing for each of those projects, then we would not have this recurring,” he said.

“We will try to protect everyone investing in the real estate sector and we will follow the best international practices to ensure this.”

Shaikh Mohammed, who is also the Survey and Land Registration Bureau (SLRB) president, was speaking to the GDN at a Press conference at the SLRB headquarters in Sanabis yesterday, during which he officially announced the opening of Rera.

He said he was optimistic of raising the country’s ranking globally and regionally.

“According to the World Bank, Bahrain ranks 25th globally and second in the GCC in the real estate sector.

“We are looking to better this and become pioneers in the region.”

Meanwhile, Rera’s consultant, International Development Ireland (IDI), is poised to help the authority become operational.

The GDN reported in December that IDI will offer consultancy services to Rera for the next three years at a cost of BD1.2m annually.

IDI will engage in sharing expertise to help the authority implement the law regulating the real estate sector, work on the organisation’s structure and help the authority in its operational phase, alongside training and workshops.

The GDN reported earlier this month that His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince, Deputy Supreme Commander and First Deputy Prime Minister, had noted that Rera had a key role in driving effective real estate regulations and facilitating regional and international investment in Bahrain’s real estate sector.

According to the EDB, real estate developments totalling $26 billion are planned or under construction in Bahrain.

Meanwhile, a fourth attempt to auction off Amwaj Gateway is scheduled to be held tomorrow with its reserved price slashed by another 15 per cent to BD22 million.