Demographers predict that by 2020, 70% of the world’s population will be living by the ocean. Bahrain is ideally placed to capitalize

ollowing on the heels of Dubai, the real estate sector in Bahrain is experiencing phenomenal growth, boosted by changes to legislation that allow foreigners to obtain freehold titles within certain residential developments for the first time. However, in comparison with other destinations in the Gulf, Bahrain continues to offer advantages, first and foremost of which are prices that are still lower than the regional average.

Real estate in the country began to pick up momentum as far back as 2001, but it has really begun to show its promise in the past few years as the number of projects in the residential, commercial, industrial and tourist segments have multiplied. A growing population, of which the country’s rising expatriate workforce represents a significant segment due to economic diversification that has drawn a number of new multinationals to the country, factors heavily in the real estate sector’s growth. In addition, Bahrain’s business-friendly environment has created a surge of interest in the Kingdom from international property developers.

Many of the new projects underway are targeting the upper end of the sector, with residential developments that offer the luxurious lifestyle that Bahrain’s ex-patriot community has traditionally enjoyed. Some new companies that have appeared on the scene, however, such as Investate, are shying away from the mega projects now dominating the sector throughout the region, preferring to focus on the development of a more traditional housing market.

These factors have combined to create a dynamic and booming industry that offers much more than meets the eye – and in Bahrain, there is plenty to meet the eye. The island’s Gulf coastline boasts prime real estate potential. An underdeveloped market, a growing ex-pat community (with high potential for rental properties), regional advantages with regards to price, new legislation facilitating ownership, and a world of opportunities for the long term development of the housing market (not to mention the potential for new financing products and services) represent a multi-layered sector ripe with both short and long term potential.

As in Dubai, much of the investment now being poured into the sector is destined for projects on man-made islands just off the coast. New mixed-use projects on reclaimed land include Durrat Al Bahrain, Bahrain Bay, Villamar@theHarbor, Anwaj Islands and Reef Island, to name a few. Ahmad Alameer, CEO of Gulf Holding, which is behind the Villamar@theHarbor development in Bahrain’s new Financial Harbor, says the market still offers considerable potential.

“It is important to understand that this market is still virgin,” he comments. “Bahrain is still under-priced and there is room for all the projects that are being developed and then some.”

Bahrain Bay’s CEO Bob Vincent agrees, adding that that self-contained developments like Bahrain Bay, offering residential, commercial and leisure facilities, are likely to become increasingly in demand as time grows in importance in modern life.

“Demographers have projected that by 2020, 70% of the world population will be living within 100 kilometers of the ocean. This trend has been strongly emerging as the world has become heavily urbanized but is not a new phenomenon. But now, there is increasing pressure in all cities to be able to provide physical and social urban infrastructure that allows time-poor residents to take advantage of the diversity of lifestyle that can be provided in a more dense and fully integrated mixed-use development,” explains Vincent.