January 25, 2017
Bahrain’s real estate continues to offer potential for attractive returns. According to CBRE, a leading commercial property and real estate services company, development and diversification of land use has increased. Its Q3 2016 Bahrain MarketView Report noted an 11% rise in transactions, with developer confidence fuelled by government-funded infrastructure and key masterplan projects.
Bahrain Economic Development Board Supports Further Growth
The Bahrain Economic Development Board (EDB) recognizes the value in enhancing the growth prospects of the real estate sector through its various initiatives. EDB is increasing collaboration among key real estate stakeholders and the sector through a series of developer roundtables. Attended by representatives from both public and private organisations, these aim to encourage greater integration between real estate and tourism in order to deliver a sustainable offering.
Following on from the roundtables, the EDB is creating an online national tourism asset and project mapping system that will help potential investors and real estate developers track opportunities within Bahrain.
The EDB is also committed to improving legislation to speed progress within the sector. It is working with the Bahrain Legislation and Legal Opinion Commission to strengthen the regulatory framework and has recently introduced escrow accounts to increase consumer protection and enhance liquidity.
In addition, the EDB backs significant events such as Cityscape Global, the largest, most influential real estate investment and development event for emerging markets, and BIPEX Bahrain, the Kingdom’s leading annual event for investors, builders and buyers.
Latest real estate successes
These fresh developments show just how fast Bahrain’s real estate sector is moving forward:
IKEA Bahrain recently held the ground breaking ceremony for its Bahrain store, which at 37,000 square metres will be their largest in the GCC. Set to open mid-2018, IKEA Bahrain expects to receive more than 1.2 million visitors annually and real estate developers will undoubtedly benefit from residential and commercial projects needing affordable furnishings.
US$ 1 Billion worth of developments were announced by Bahrain Real Estate Investment (Edamah). These include waterfront developments in Muharraq and Hawar as well as themed retail strips around the Kingdom.
Bahrain’s first Real Estate Investment Trust (REIT) has been authorised for issuance by Eskan Bank. With low entry (around USD 1,325), the new REIT is designed to encourage private sector participation and enhance liquidity. Bahraini and GCC individuals and institutions can earn rental income across diversified assets. This will greatly enhance transactions, liquidity of the assets along with enhancing exit options for investors.