Manama, 10 September 2017: Bahrain’s real estate sector is witnessing rapid expansion due to growth in demand for residential and retail development. The Bahrain Economic Development Board (EDB)’s economic quarterly report revealed growth in the sector reached 4.5% in the first quarter of 2017, contributing over US $1.7 billion to the economy.
Real estate transactions in Bahrain grew by 15.2% in the first quarter of 2017, reaching a total value of USD $770 million, an 8.1% jump compared to the same quarter in 2016.The retail and hospitality sector also witnessed rapid growth, while the hotels and restaurants sector emerged as the fastest growing sector during the first quarter of this year, recording a 12.3% year-on-year real rate of expansion.
According to statistics published by the Ministry of Housing, the number of residential applications pending allocation of units currently stands at 55,000 and is estimated to grow by 5,000 each year, and are driving the high demand for residential units in the Kingdom. Additionally, the influx of visitors to Bahrain in recent years has also contributed towards a growing demand for tourism and retail facilities. In 2016, the total number of arrivals to Bahrain increased by 6% from 2015 to 12.2 million visitors. The Kingdom welcomed 5.6 million tourists to Bahrain in the first half of the year, according to Bahrain Tourism and Exhibitions Authority (BTEA), representing a 14% increase from the first half of 2016.
Housing developments, both social and private, have increased in recent years and the Kingdom is currently witnessing more than 17 housing projects, which include some private projects. The Kingdom is also home to the Avenues Mall, a 83,700 sqm building to be opened later in the year, as well as other retail developments including Bahrain Marina and mixed-use development areas such as Bahrain Bay and Water Garden City.
Over US$11billion of mixed-use real estate projects will be showcased at the Bahrain Pavilion at Cityscape Global in Dubai. It will feature participation by the Bahrain EDB as well as the five major developers Bahrain Bay, a USD 2.5billion waterfront district; Diyar Al Muharraq, a progressive urban development including the iconic Dragon City; Durrat Al Bahrain, a hallmark island city; Canal View, canalside living at its finest in the heart of Dilmunia and Bahrain Marina, a trendy waterfront development in the heart of Manama.
Commenting on the opportunity for real estate investors in Bahrain and on the participation at Cityscape Global 2017 in Dubai, HE Khalid Al Rumaihi, Chief Executive of Bahrain EDB, said:
“Recent figures demonstrate the resilience of Bahrain’s real estate sector and highlight the increasing demand for housing, not only in the Kingdom but across the wider region. Strong growth in this sector has been supported by the implementation of economic and legislative reform and forward-thinking policies such as the public private partnership model by the Ministry of Housing and the recently issued Real Estate law.
“Cityscape Global is an excellent platform for developers to showcase their world-class projects to interested investors and we think Bahrain has great developments to offer and are pleased to be taking part for the third year in a row.”
Bahrain has a pipeline of large-scale infrastructure projects across a wide range of sectors valued at US$ 32billion, which will support growth within the real estate market and help maintain robust economic growth throughout the Kingdom. In addition to developing the necessary hard infrastructure, Bahrain is implementing soft infrastructure such as smart legislation, enabling investors to realise value from their capital. A new regulation has also been developed in consultation with the private sector to specifically support growth in the Kingdom’s real estate sector.
For further information, please visit Bahrain Pavilion at stand 3F10 from September 11 to September 13 at Dubai World Trade Centre.
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Notes to editors:
About Real Estate Developers participating at Cityscape Global:
Bahrain Bay is a US$2.5 billion luxury mixed-use development strategically located on the fringe of Bahrain’s business district with a master-planned design that combines the azure waterfront around a vibrant neighborhood of residential, commercial, corporate, leisure, retail and public realm all stretching over an area of 450,000 sqm. The project is home to an array of uniquely designed architectural icons such as the Four Seasons Hotel, Arcapita building, AlBaraka Tower, the headquarters of Al Baraka Islamic Bank headquarters and soon to be opened United Tower that will house the Wyndham Grand Hotel. Construction is in full swing on the three tower luxury residential complex “Waterbay“ by Bin Faqih Real Estate Investment Co while on-site work has commenced on “AXA Tower ,“ the new regional offices of AXA Insurance Group. On a parallel level, development of public realm has gained prime focus timing with the completion of upcoming projects and to support Bahrain Bay’s popularity as the choicest venue for community festivals and cultural concerts featuring international artists. The Public Realm will include restaurants, parks, promenades and walkways.
Bahrain Marina, is a mixed-use development that aims to add a new distinctive waterfront to the Kingdom’s pristine coastline in Manama. The new destination will include a five-star hotel, serviced and freehold apartments, waterfront villas, a fully-integrated family entertainment center, cinema complex, boardwalk, marina, yacht club and a recreational waterfront space with dining and retail facilities.
This iconic world-class facility aims to enhance the infrastructure of Bahrain’s tourism sector by 2020.
Durrat Al Bahrain is urban living- island style. As Bahrain’s most inspiring development, Durrat Al Bahrain is considered a landmark development. Located on the south coast of Bahrain, this 21 km² development has been created across a cluster of 15 spectacular islands. It hosts, among its many offerings, beautiful beachfront villas, parks and entertainment precincts, restaurants and a 400-berth marina. Upon completion, it will host executive apartments and offices, luxury hotels and spa resorts and premier retail malls. Durrat Al Bahrain will be the region’s most prominent seaside resort city, putting Bahrain on the global tourism map.
The Canal View development is located in Dilmunia Island and covers an area of 13,068 m2. The project includes luxury apartments that are a mere walking distance from Dilmunia Mall and are located near Bahrain’s main arterial roads, social infrastructure and the international airport.
Diyar Al Muharraq is one of the most visionary and progressive urban developments in the Kingdom of Bahrain; an all comprehensive, fully integrated modern city best described as a complete society incorporating a strong line-up of projects which include a vast variety of residential and commercial properties, ideal for both personal and investment purposes. Aimed at creating a long term and sustainable township, Diyar Al Muharraq is located on the northern shores of Muharraq and comprises of 7 islands with a total of 10 square kilometers of reclaimed land. Upon completion, Diyar Al Muharraq will encompass over 40 kilometers of waterfront with sandy beaches, and all the elements of a vibrant community ranging extensively from fully equipped educational facilities and schools, medical centres, recreation facilities, shopping malls, expansive parklands, hotels and marinas. Diyar Al Muharraq is to be a first of its kind development, one that aims to offers its occupants a safe haven for the ideal life.
Bahrain Economic Development Board
Tel: + 973 1758 9936
About the Bahrain Economic Development Board
The Bahrain Economic Development Board (EDB) is an investment promotion agency with overall responsibility for attracting investment into the Kingdom and supporting initiatives that enhance the investment climate.
The EDB works with the government and both current and prospective investors to ensure that Bahrain’s investment climate is attractive, to communicate the key strengths, and to identify where opportunities exist for further economic growth through investment.
The EDB focuses on several economic sectors that capitalise on Bahrain’s competitive advantages. These sectors include financial services, manufacturing, ICT, tourism, logistics and transport.
For more information on the Bahrain EDB visit www.bahrainedb.com; for information about Bahrain visit www.bahrain.com .