Freeze infrastructure fees: BaPDA chairman

TDT | Manama

Aaref Hejres, Chairman of  Bahrain Property Development Association (BaPDA), has called for launching a stimulus package to revive the realty market and attract investors amid coronavirus pandemic.  He also urged authorities here to review decisions and laws governing the sector to account for the effect of coronavirus situation. 

The changes, he said, should start with the freezing of the infrastructure fee for at least a year. Realty sector is now less than half the size of what it was in the past, and the fee structure is now hurting more than ever. “The law needs a review in consultation with investors and developers in the Kingdom,” Hejres said while calling for comprehensive steps and well-integrated revival plan. 

The Kingdom, he said, is not immune to the economic challenges the world is facing and to survive, “we need to adapt and find new income sources.”  Freezing the infrastructure law will benefit all parties. “Increases in building permits, real estate registration and other licensing fees will bring increased revenues to the state coffer.” 

Construction materials sector, support services sector and other related sectors will also reap its benefit, Hejres added.  He also expressed optimism in seeing a revival in the sector in light of the new measures announced by the government to stimulate the economy and to cushion the economic pain caused by the coronavirus (COVID-19) pandemic. 

The infrastructure fees, reportedly, increased to BD12 per sqm last year. At that time, Works, Municipalities and Urban Planning Minister Essam Khalaf has clarified that this amounts to only 40pc of the cost involved, with the government bearing remaining 60pc expense involved in developing infrastructure.