Construction & Real Estate
From The Report: Bahrain 2015
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The residential segment is well on its way to returning to pre-2009 levels of growth, with the volume of real estate trading expanding by 30% in 2013 and total value of transactions reaching $2.28bn, compared to $1.76bn in 2012. State-funded housing projects are expected to drive expansion, with the government signing its first-ever housing public-private partnership agreement in 2012. Spending on social housing has boosted the kingdom’s construction sector, which is projected to return to stable growth in the next few years, expanding by 8.59% annually until 2018. Meanwhile private contractors have benefitted from transport construction and expansion projects, with rail and road links set to aid development under the auspices of the Economic Vision 2030 plan. The government intends to invest a total of $22bn in infrastructure over the next four years, with industrial construction poised to see strong growth as a result of new transportation and logistics builds.

This chapter contains an interview with Mohammed Khalil Alsayed, CEO, Ithmaar Development Company.

Articles from this Chapter

Overview

Bahrain’s retail and housing segments grow as the real estate sector begins to bounce back
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Although recovery has been slower in Bahrain compared to some of its GCC neighbours, the kingdom’s real estate sector has made steady progress since 2013, with gains in the residential and retail markets demonstrating a gradual return of investor and developer confidence. While the office market remains oversaturated, with flat growth reported in 2013, new industrial developments complementing large-scale infrastructure projects have offered developers a diverse mix of opportunities. The provision…

Analysis

Though the Bahraini property rental market is subdued, apartment sales are increasing
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With the smallest geographic area and smallest population within the MENA region, Bahrain possesses a unique set of real estate market fundamentals. The kingdom has one of the GCC’s highest population densities, with the majority of its 1.2m citizens living in Manama and Muharraq, meaning obtaining land for new buildings can be a challenge. At the same time, income distribution is significantly more disparate within Bahrain compared to other GCC nations, and many Bahrainis fall into the medium-…

Overview

Development plans promote infrastructure and home building in Bahrain’s construction sector
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Government moves to enact an ambitious infrastructure investment plan backed by financial assistance from the GCC’s $10bn Gulf Development Programme should support steady expansion of construction activity in Bahrain over the next few years, following a period of slower growth. The push to provide affordable housing has seen a host of new projects launched and is expected to drive the sector over the medium term, with the government concurrently launching major infrastructure projects that will…

Analysis

Bahrain plans construction of social and affordable housing
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Underpinned by a government-funded housing strategy, Bahrain’s residential construction segment has recorded solid expansion in recent years. The kingdom signed its first-ever real estate public-private partnership (PPP) in 2012, and established a new finance scheme in 2013, offering subsidised mortgages and bolstering private sector development. Although the government has pledged to provide thousands of new units for its citizens, the housing backlog stands at over 54,000 applications, and longterm…

Interview

Mohammed Khalil Alsayed, CEO, Ithmaar Development Company (IDC): Interview
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Interview:Mohammed Khalil Alsayed What is currently in the social and affordable housing project pipeline? MOHAMMED KHALIL ALSAYED: I believe that the momentum in regard to constructing housing units has picked up very well in Bahrain in 2014. In as far as the social and affordable housing public-private partnership (PPP) project of Naseej is concerned, we are on track to deliver the committed number of units, which is around 2800. The delivery timelines are staggered so that the mechanism…