RSSFollowing the new legislation, which permits foreign individuals to own property in certain areas, the real estate market in Bahrain has seen a boom. The foreign expats were not allowed to own property in Bahrain before and now the new change in legislation has invited an influx of investors and consumers alike with serious investment by the foreign expatriates especially from US, UK, and Europe.
Plain investment activity in Bahrain is also strong and now being bolstered by the fact that the King Fahd Causeway linking Bahrain to Saudi Arabia has become a commuting route for Western expatriates, who are working in Saudi but refer to house their families and indeed live and enjoy the far more conservative lifestyle in Bahrain.
In a bid to avoid total dependence on oil, the government is making inroads on other areas of economy like financial services, tourism, information technology, education, and telecommunications. This will bring many international companies to Bahrain along with thousands of working professionals and their families and hence we can always see a growth in real estate market in Bahrain. Bahrain is also the first Gulf state to have a free trade agreement with America becoming a central hub in the Gulf for many multinationals doing business across the region.
Even before this law, real estate agents in Bahrain had a good business because of the high demand for rental property by the expatriates, who had come to live and work in Bahrain. Now the new law brings forth an overnight market explosion with many investors grabbing the real estate opportunities. The local government also leaves no stone unturned to reap the maximum benefit out of this. Since the market is new and not fully explored, there are plenty of opportunities remaining for anyone who wishes to own real estate in Bahrain.
In terms of the property buying process in Bahrain it adopts the similar way of buying processes worldwide. Investors are advised to seek independent legal assistance throughout the entire purchase process and the legal property ownership rights in Bahrain are sophisticated and well developed meaning the purchaser is protected once permission to purchase has been granted and deeds of ownership transferred into the investor’s name.
Adding another opportunity to Bahrain is the 2022 FIFA World cup which will be held in Qatar. As Bahrain is the closest to Qatar, it stands to gain a $60bn bonus with construction and tourism sectors. The Culture Ministry Under-Secretary, Dr. Isa Amin, mentioned that the 2022 World Cup in Qatar will be a huge boost for Bahrain tourism sector.
The BCCI Board member and Contractors Committee Chairman, Samir Nass said the biggest beneficiary will be the construction sector in Bahrain with several world class infrastructures coming up. According to Richard Mathias, the Mathias Tourism Managing Director in Bahrain, the event will banish the image of GCC and Middle East as a war zone and not tourist-friendly. The 2022 FIFA World cup truly stands for Bahrain to showcase or sell itself to the world.
Coming to the construction sector, international market research firm, and Research and Markets reports that there are good signs of construction sector in Bahrain to pick up soon with moderate growth in the next two years. Last year, the construction sector set the record of BD461mn but owing to the global recession it had to deal a severe blow. But now, it is resurging with new projects of BD614mn entering the new market. Among some of the biggest projects undergoing at present include the Bahrain Bay Development which features the first Four Seasons hotel in the country and the BD2.2bn Durrat Al Bahrain project, covering 20 square kilometres.
Seeing all these opportunities, the Bahrain based banks are strategically aligning themselves for property market entry in the UK. Leading Bahraini banks are in the UK seeking out viable entry points into the British real estate marketplace and the resultant effect is that Bahrain is making itself heard in the global property market. Bahrain based investment bank Gulf Finance House (GFH) has reportedly moved into the UK, established a significant presence and aligned itself for immediate market entry.
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