Manama Bahrain Real Estate
The Bahrain Industrial Investment Park, located in the heart of the capital Manama and focused exclusively on production, will be 80% occupied from 2018. Leading global real estate consultants, Real Estate Advisors Bahrain, have released the first real estate market index in Bahrain, which provides a comprehensive insight into market conditions in Bahrain and its potential for future growth.
The new apartments are to be built in a development project on ten man-made islands that will eventually house more than 100,000 people. The project is to include a residential and office space of 1.5 million square meters. This is the largest housing project in the area, which is usually occupied by Americans, and the second largest in Bahrain after Manama.
The reef island is said to be the most sought-after location due to its proximity to the Gulf of Aden and its location in the heart of the city.
After an 11.5% decline in 2017, residential property prices remained stable, while rents for residential property fell by 3.7%. There were fewer declines in rents for apartments, but second home sales were lower, falling 1.6% in the first quarter of 2018. The agent fees were between 1% and 5% of the purchase price, depending on the type of property and purchase price. The company noted that areas of high demand were more robust than the downturns, including the Amwaj Islands and the Seef District.
The transaction costs for the return trip included the purchase of the property, the title deed and the subsequent sale. The cost was 5000 AED5,000 If a title deed has been issued before, but not for the sale of a second home.
PCs and military personnel will receive housing benefit, and civilians eligible for the LQA will receive housing benefit. The rent and expenses for accommodation abroad are sufficient to cover the costs of accommodation and utilities, to accommodate the military and personnel adequately.
Members may choose a house from any location on the island that is not off the list - limits of this list. The Residential Security Team will determine which homes and apartments are safe for tenants. E-4 unaccompanied personnel assigned to the US Marine Corps Special Operations Command in Manama will be housed in unaccompanied housing.
Once the seller has found a property he wishes to buy, he will be contacted by the buyer or his agent. After the negotiations, the buyers sign an agreement in which the sellers undertake not to sell the property to others. If the property is registered within 60 days of the execution of the purchase contract, buyers are entitled to a 10% discount on the registration fee.
Alternatively, developers could soon be able to buy insurance bonds, an option currently being developed by the RERA and Bahrain Insurance Association. In addition, plans for developers to put cash in escrow accounts and buy bonds have triggered an extension of visas for expatriates, which should help consolidate the sector's stability.
In addition, the increasing demand for real estate in the Middle East and North Africa (MENA) region has increased the supply of commercial property in the Kingdom. Chowdhury cited the importance of Saudi Arabia and its economy in explaining this stability, noting that any development there would have a positive impact on Bahrain's economic development and also on the country's economy. Commenting on a recent report from the International Monetary Fund (IMF) and the World Bank, he said: "The Kingdom of Bahrain has undertaken a number of positive reforms in recent years to diversify its economies and strengthen the private sector. The report says that Saudi Arabia accounts for more than half of total foreign direct investment (FDI) in Bahrain, which is partly attracted by its more liberal environment.
In recent years, despite a persistent oversupply, some new developments such as the United Tower and the AXA Building have gone online. Other projects being developed by Kuwaiti companies in Bahrain include the Al Ramli Project, jointly owned by the Bahraini Government. The project, agreed in 2013, involved the construction of 30,000 units and was financed by the Abu Dhabi Development Fund. However, a much larger project is in the works: The "Al-Ramli" project covers a total of 1.5 million square meters of commercial space.
The Bank plans to start work in early 2019 and is currently working on the project, which includes the construction of two residential towers, the United Tower and the AXA Building, with 303 and 210 villas respectively. Supply of 4,322 units will intensify over the next four years when the first phase of the Oyx Real Estate Investment Trust (OREI) project is handed over to the Ministry of Economic Development and Development (MEDD) of the Government of Bahrain for construction. Projects currently being worked on include the development of a new office building and hotel in the city of Manama. While tourism continues to drive retail in Bahrain, the sector is facing headwinds as travel is limited to Covid 19 and normal activity has yet to resume.