Nearly 3,000 properties were sold in Bahrain in the first quarter of 2021, which is more than double, thanks to a new set of rules adopted by the government which will support the economy and the real estate sector. Data from the Bahrain Economic Development Board also revealed the transactional numbers have increased dramatically along with the total combined value. According to the listings portal Property Finder, the sales listing has also seen a growth of 10 percent during the first quarter when compared to 2020.

A lot of this success can be attributed to the swift and strategic financial decision taken by the government to support the economy, reported EDB. Ali Al Mudaifa, executive director, investment origination at the Bahrain EDB told the media, “The rise in real estate transactions indicates the growing demand for residential and retail properties in the kingdom, which represents an opportunity for investors and developers who can benefit from Bahrain’s business-friendly regulations such as 100 percent foreign ownership. In addition to local demand, we witnessed a 21 percent surge in real estate transaction value from expat buyers including GCC nationals.”

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Savills said that Bahrain has seen a significant shift in living patterns as many citizens in the kingdom are shifting from larger to smaller units. The shift is attributed to an increase in energy costs. Moreover, shifts have also been observed given the increase in supply by approximately 3,500 apartment units in a very short period of time.

The balance of supply and demand will be further disrupted with a supply of 4,322 units over the next four years when projects such as Golden Gate Towers, Oryx Bahrain Bay, Paramount Tower, Harbour Row, and Amwaj Gateway are completed. 

In this regard, Harry Goodson-Wickes, Head of Northern Gulf at Savills told the media, “Over the past few years, Bahrain has adopted a series of positive reforms to diversify its economy and empower the private sector. Under the broader economic reforms, the government also launched the National Planning Development Strategy 2030 and established the Real Estate Regulatory Authority (RERA) to help the nation achieve an integrated approach towards urban development, increase transparency, promote investments while protecting the rights of consumers. 

“However, government revenues have not kept pace with the overall diversification strategy and in addition to that, the onset of Covid-19 has undone a lot of progress made under the Fiscal Balance Programme (FBP),” added.

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The new real estate valuation systems-Bahrain Valuation Standards (BVS) and Bahrain Property Measurement Standards (BPMS) are aligned with international standards.

According to Real Estate Regulatory Authority (RERA) board chairman Shaikh Salman bin Abdulla Al Khalifa, RERA collaborated with the International Valuation Standards Council (IVSC) and the Royal Institute of Chartered Surveyors (RICS) in developing and finalising the BVS.

With regard to the launch of new real estate valuation systems in Bahrain, Shaikh Salman bin Abdulla Al Khalifa told the media, “The introduction of the BVS for real estate will create greater transparency, efficiency, and consistency in the market.”

He added, “The BVS will also ensure greater protection for investors and indeed other sectors, including the banking sector, which depends on accurate, valid and reliable valuation reports when granting real estate finance to companies and individuals.”

Shaikh Salman bin Abdulla Al Khalifa further revealed that the BPMS will be circulated in coordination with the Ministry of Works, Municipalities Affairs and Urban Planning to all engineering offices and private survey offices to adopt standardised measurement standards.

Earlier this year, RERA, which was launched on March 1 last year, made it mandatory for real estate valuers to have a licence if they are to operate in Bahrain. To obtain a licence, the valuers must participate in RERA’s Continuous Development Programme (CPD) and also renew their valuer license on an annual basis.

Last week, RERA urged all valuers in Bahrain to obtain their licences before the November 2 deadline.

In the month of May, RERA also launched a property seller-broker contract to ease the sales process by adding clarity to it.

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Bahrain provides several benefits to businesses especially proptech startups willing to set up operations in the country. The country is regarded as expat-friendly and the standard of living in the Kingdom is higher when compared to the other countries in the MENA region.

In Bahrain, foreigners are not restricted when it comes to ownership rights. 100 percent ownership makes Bahrain
one of the most attractive places for doing business for foreigners.

With regard to Bahrain being a top proptech destination, HexGn chief executive Jappreet Sethi told the media that, “The academia in the kingdom has been contributing significantly by setting up smart campuses in a bid to make their education system more advanced and to transform it into a source of inspiration for innovation.”

He added, “Local talent is being shaped to help Bahraini ecosystem increase its dependency on homegrown talent by offering courses in entrepreneurship, blockchain and much more. Additionally, agencies like Tamkeen are already giving impetus to entrepreneurial ventures in Bahrain through an array of schemes and services for easy-hiring of locals for various fields,”

According to Ali Murtaza, the Director of Real Estate and Tourism at Bahrain Economic Development Board, over the years Bahrain has proved to be a top destination for tech-driven industries. He believes the Bahraini ecosystem can help proptech firms grow at an unmatched rate, as it has no dearth of any of the startup-essential resources.

The HexGn survey also found out that currently, proptech solutions in sales and leasing, planning and design, and property management are the most sought after by the industry. The introduction of new building materials, AI, IoT sensors, and drones are considered to have the most impact on the real estate industry.

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