Demand for housing in Bahrain is expected to exceed supply in the coming years thanks to the kingdom’s young and fast-growing population which is driving particularly strong demand for apartments across the kingdom, said industry experts.

The strength of Bahrain’s hospitality and real estate pipeline is supported by strong market fundamentals, with the sector expanded steadily over recent years, driving its contribution to the Kingdom’s GDP up by 4.1 per cent compound annual growth rate (CAGR) between 2012-2016, they stated at the Gateway Gulf investment summit.

Opportunities for private sector investment across Bahrain’s vibrant hospitality, retail and real estate sectors were showcased at the event held under the patronage of HRH Prince Salman bin Hamad Al Khalifa, the Crown Prince, Deputy Supreme Commander and Chairman of the Bahrain Economic Development Board (EDB).

The two-day event saw leading industry players explore ways of unlocking the opportunities being created in the region.

Major regional investment-ready projects worth $18 billion - with projects in the planning phase driving up the value of the project pipeline to $26 billion - were announced during the event, with a particular focus on mixed-use developments and new tourism hubs across the southern part of the kingdom.
 
Bahrain’s thriving real estate and tourism sectors were also showcased to international investors at Gateway Gulf.

Under the umbrella of the Bahrain Mumtalakat Holding Company (Mumtalakat), numerous new resorts in south of the kingdom revealed huge potential for growth to investors at the forum, in line with efforts to develop the tourism sector.

The major projects included Al Sahel, a new five-star destination; Durrat Dawn and Durrat Crescent, mega real estate projects worth $2 billion with hallmark residential, commercial and tourism anchors for a transformative resort city in the south-east of Bahrain; as well as the Bilaj Al Jazayer development with its flagship Fairmont Hotel along Al Jazayer Beach, an unchartered new tourism destination in the south west.

Other unique developments showcased included Hawar Island, a world-class eco-friendly destination, Phase One of which will commence in the coming months.

“The tourism industry represents approximately 10 per cent of the world’s GDP, a priority sector for Mumtalakat as the sovereign wealth fund of Bahrain,” remarked Mahmood H Alkooheji, CEO of Mumtalakat.

“We take great pride in the showcasing of several of our key projects in Bahrain here today. Worth over $2 billion, these real estate projects in the south of the island will enhance our tourism profile as a coveted destination,” he noted.
 
According to him, the housing and mixed-use investment opportunities were also a key theme at the investor forum.

"Demand for housing is expected to continue to exceed supply in the coming years thanks to the kingdom’s young and fast-growing population, driving particularly strong demand for apartments which has gained momentum in sales price over recent years," stated the experts.
 
Leading Indian developers Ajmera Mayfair and Global Realty which have a combined experience of over 100 years in the real estate industry and have delivered a total of 40 million sq ft of commercial and residential spaces in India, came together to announce a $250-million project at Bahrain Bay Development.

The duo will be offering the tallest residential towers in Bahrain "The Golden Gate Towers". The project consists of modern world-class amenities and facilities and 750 super-luxury apartments with a wide range of options.
 
The Real Estate Regulatory Authority (Rera), established in 2017, is committed to supporting growth across the real estate sector by strengthening regulation, attracting world-class investors and ensuring consumer confidence and protection.

This directly supports the plethora of projects being showcased during Gateway Gulf, and highlights Bahrain’s commitment to strengthening regulatory frameworks across all sectors to encourage investment, said the industry experts.
 
Housing projects showcased at the event range from social housing opportunities to innovative schemes in collaboration with the private sector for the provision of affordable housing (Mazaya), which helped to enhance the purchasing power of citizens since its launch in October 2013.

Statistics show that more than 2,650 citizens have purchased their housing units over the last four years thanks to the funding solutions provided by this program.

A total of BD15 million has been provided in support of Mazaya beneficiaries in co-operation with the banks participating in the program.

Real estate developers have also sought to offer housing at affordable rates for beneficiaries, through affordable finance. The growing success of Mazaya programme was apparent at the forum.
 
This is in addition to premium developments such as the $500-million Al Naseem, which is due to open tenders this quarter, and the $1.1-billion Hasabi development which will combine residential villas, apartments, retail, restaurants and education facilitates, said the experts.
 
Overall tourism revenues are projected to reach $1 billion by 2020, which is driving further growth opportunities in connected sectors, especially retail and leisure, it added.-TradeArabia News Service