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Bahrain property market still moving ahead nicely

Several finance companies expect Bahrain's property market to perform well in 2008. The Bahrain Chamber of Commere and Industry reported a rise in total assets up from 2006. Total assets last year were BD28.1 million up from the BD18.6 million reported the previous year. The BCCI's assets include capital reserves, building expansion project funds and real estate re-assessments. These accounted for BD26.9 million with the remaining BD2.83 million consisting of building income and government support.

When considering these figures, it's no wonder that companies like Amlak Finance are quite interested in Bahrain's future. Amlak is interested in expanding their mortgage finance business into several new countries, including Bahrain. Current mortgage laws are favourable toward the buyer in the UAE making it easier for foreign and domestic buyers to obtain the financing needed to buy properties in the Middle East. Since demand has consistently exceeded supply in the Gulf for several years now, there is no shortage of buyers. The need for fresh supply is apparent and developers are working hard to fill the void.

In other markets, this could be cause for concern and could signal a property bubble, but this is not the case in Bahrain. A fast growing population and a growing economy will keep the property market going for quite some time. For the most part, Middle Eastern high end properties seem to gather all of the attention, but more investors are beginning to realise the need for properties that cater to middle-income individuals. Larger populations mean more commercial and retail opportunities so commercial space is also at a premium.

There are several opportunities for investment in the market and government support is high so developers, finance companies and investment funds are able to help emerging markets mature.

 

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