Farayand Virtual World

* Reforms Give Shot in Arm to Bahrain Realty

Land values in prime locations increase

Over the past few years, Bahrain has witnessed a boom in land values in prime locations. The positive reforms being made by the government of Bahrain towards developing a strong economy and infrastructure have attracted many foreign and GCC investors to the island’s property market.

Bahrain has witnessed hectic real estate and construction activities in real estate and construction activities in early years. After having declined from 1999 to 2001, the number of commercial licenses to the construction sector has been increasing at a rapid rate since 2002.

Even though the construction and real estate sector is booming, there has not been a strong demand from the sector for bank borrowing.Because of the lack of high yielding investment instruments, excess liquidity, and overall political stability the real estate market grew to $615.4 million in the first quarter of last year as compared with $468.9 million in 2000.

The figures confirmed that that there is a demand for residential houses in Bahrain and there remains a huge gap the needs to be filled. As a result, the Cabinet approved an additional support of 12 million dinars to the housing bank.

Bahrain has now opened its doors for permanent resident permits as long as the person remains the owner of the property.

He may sell the property at any time afterwards at any time to another foreign passport holder, but in that case his resident permit will be terminated along with the sale of the property.

Also, expatriates who hold a valid residence permit in another GCC state and occupy senior positions with their companies can move their families to Bahrain and continue working in the other Gulf country, according to a plan introduced recently by the government.

(Source: Gulf News)