Captain's Corner: Setting new benchmarks for real estate sector
By Captain Mahmood Al Mahmood
Against the backdrop of an oversupplied real estate market where residential and commercial properties are struggling to attract tenants, the announcement of RERA’s multi-pronged approach to stimulate the sector economically and add new and stronger transparency guidelines to attract investors and developers is much welcome.
Bahrain has a fairly clear track-record when it comes to real estate development despite the occasional failures – Marina West and Amwaj Islands being the largest problem developments. The trouble is that the climatic conditions in the region mean that any real estate development which exceeds the planned time limit is bound to deteriorate, leading to huge loss of investment – not just money but also confidence. The RERA’s National Real Estate Plan will put in place a comprehensive and technology - focussed regulatory reform process that is bound to instill much-needed confidence into the market for investors and developers.
Of all the proposed reforms, the most important is the development of a comprehensive database that will provide all stakeholders with updated and reliable information that is collected according to a common standard and classification. This will help developers to set their future goals, investors to decide how much to invest and help authorities to set vital urban zoning and planning benchmarks. This is the first step towards making Bahrain’s real estate sector a top contributor to the national GDP. The Kingdom has all the attributes needed to scale the charts when it comes to transforming itself with desirable residential and commercial projects. The social eco-system and the political safety and security of Bahrain make it a very good real estate investment point.
Flexibility and vision of our beloved leadership are the keys to growth and with the ambitious four-year Plan, the National Real Estate Plan 2021- 2024 will deliver just that.
Captain Mahmood Al Mahmood