BizBahrain Magazine Nov-Dec 2017

OBG | Business Report
Bahrain’s Real Estate Sector
Driven by Investment and
Regulatory Reforms
Oxford Business Group (OBG)
Rising demand for residential and
retail development is driving
rapid expansion in Bahrain’s real
estate sector, with billions of dollars
worth of mixed-use projects to be
launched in the near future, while new
regulatory measures have been issued
aimed at increasing market stability
and long-term growth.
Real estate developments
totalling $26bn are planned or under
construction, according to the Bahrain
Economic Development Board
(EDB), which comes after developers
showcased five key projects worth
more than $11bn at the Cityscape Global
property event in September.
Notable among those showcased
at the event is the 310,000-sq-metre
Bahrain Marina project, a mixed-use
development featuring residential,
entertainment, leisure and marina
facilities in Manama.
The first phase of the project,
relating to enabling and marine works,
is being undertaken by local company
Al Hassanain Contracting, with an
expected completion date of the third
quarter of 2020.
Meanwhile, Bahrain Marina
Development, the company in charge
of managing the project, expects the
second phase, which consists of piling
work, to begin either at the end of this
year or in early 2018.
Construction is also under way
on the Diyar Al Muharraq project, one
of the largest urban developments in
Bahrain.
Located on 12 artificial islands
at the northern tip of the Bahraini
archipelago, the development includes
a range of residential, commercial and
retail properties, community amenities
such as schools and hospitals, and 40
km of beaches.
In August the Diyar Al Muharraq
Development Company announced that
infrastructure work for the second half
of its Al Bareh residential zone had
begun, with the section to be completed
by the end of next year.
The other major projects showcased
include Durrat Al Bahrain, a 21,000-sqmetre
development comprising offices,
luxury hotels, spa resorts and retail
space across 15 islands; CanalView,
a residential, recreational and health
development in Dilmunia; and Bahrain
Bay, a luxury $2.5bn, 450,000-sqmetre
project featuring residential,
commercial and retail space.
Growth data suggests opportunities for
real estate
The substantial pipeline of major
projects comes amid strong overall
growth in real estate, led by the rising
demand for residential and retail
developments. The sector expanded
by 4.5% in the first quarter of the year,
according to the EDB, well above overall
economic growth of 2.9%, and generated
$1.7bn, with residential sales alone
jumping by 8.1% year-on-year.
Meanwhile, in a sign of further
growth, the number of residential
applications is expected to rise by 5000
units per year, according to the Ministry
of Housing (MoH).
“Recent figures demonstrate the
60 November-December 2017