Interview: Amin Alarrayed, CEO, Naseej
How are international real estate trends being localised to suit Bahrain’s market conditions?
AMIN ALARRAYED: The resurgence in the real estate market, demonstrated by a significant uptick in transactions in 2023, is indicative of a robust recovery and growing investor confidence. This recovery is not only a bounce back from previous market lulls, such as those experienced during the Covid-19 pandemic, but also a reflection of a strategic adaptation to global shifts. One notable trend is the sustained interest in luxury and coastal developments. Bahrain continues to enhance its appeal by integrating high-end waterfront properties that cater to both local preferences and international standards. This includes developing areas like Bahrain Bay, which have become centres of activity – with new avenues of commerce and hospitality.
In what ways can the public and private sectors help to ensure that real estate developments are sustainable and aligned with urban growth?
ALARRAYED: Through public-private partnerships (PPPs), Bahrain is leveraging both the efficiency of the private sector and the strategic oversight of the public sector to create developments that are responsive to the needs of the growing population. One of the key areas where PPPs have been instrumental is infrastructure development, which supports both new and existing real estate projects. This collaboration has enabled the execution of complex projects that might otherwise be unfeasible under traditional funding mechanisms. These partnerships extend beyond building. They include planning and managing sustainable urban growth that accommodates both current residents and future generations.
In addition to infrastructure and mixed-use developments, PPPs address the need for affordable housing. By leveraging government resources and insights to create housing solutions that are accessible to a broader segment of the population, these initiatives are crucial in fostering inclusive community growth and supporting Bahrain’s socio-economic development.
Where do you identify opportunities for regulatory reforms to assist first-time homebuyers?
ALARRAYED: Addressing financing challenges in the real estate sector involves collaborative efforts with government entities like the Housing Bank for Trade and Finance to streamline mortgage processes and make homebuying more accessible to first-time buyers. Policy reforms could focus on subsidising interest rates and easing down-payment requirements, alongside digitising mortgage processes in order to enhance efficiency. Such initiatives not only improve accessibility but also stimulate the housing market by easing the entry barriers for new homeowners.
To what extent is the real estate sector contributing to Bahrain’s environmental goals, particularly in terms of reducing carbon emissions?
ALARRAYED: The real estate sector plays a crucial role in advancing the country’s broader environmental objectives, particularly with regards to reducing carbon emissions and integrating sustainable practices. Through the comprehensive National Real Estate Plan 2021-24, we remain committed to developing projects prioritising environmental sustainability.
Developments are increasingly integrating smart-city technologies that optimise energy use, reduce waste and improve the sustainability of the built environment. Smart homes are being designed with features that consider local climatic conditions – maximising natural light and ventilation, and reducing the need for artificial cooling and heating. Using sustainable materials and technologies in construction – such as solar panels, energy efficient appliances and systems designed to reduce water consumption – reduces the environmental impact of developments and provides residents with healthier living spaces and reduced utility costs.
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