Construction & Real Estate
From The Report: Bahrain 2020
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Bahrain’s construction sector was one of the fastest-growing non-oil sectors. Its expansion was supported by a surge in investment into infrastructure for energy, manufacturing and real estate. Rates of growth and lending have risen steadily on the back of a major oil and gas modernisation programme and a number of big-ticket projects. Real estate in Bahrain has remained resilient in the face of successive macroeconomic challenges, maintaining a positive growth trajectory in recent years even as rental and occupancy rates declined across the residential, commercial and hospitality segments. While developers have struggled with oversupply and weakening demand – particularly for luxury residential space – lower property prices have created new opportunities for businesses in the kingdom, where office space remains significantly less expensive than Abu Dhabi and Dubai. This chapter contains interviews with Mohammed Khalil Alsayed, CEO, Ithmaar Development Company; and Sheikh Mohammed bin Khalifa Al Khalifa, CEO, Real Estate Regulatory Authority.

Articles from this Chapter

Overview

Breaking ground: Mega-projects across key sectors drive growth in building activity
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As a significant contributor to growth, Bahrain’s construction sector stood as the fastest-growing non-oil sector in 2018. Its expansion was supported by a surge in investment into infrastructure for energy, manufacturing and real estate. Rates of growth and lending have risen steadily in recent years on the back of a major oil and gas modernisation programme and a number of big-ticket projects. These include an upgrade of the Sitra refinery; a new aluminium smelter line for Aluminium Bahrain…

Interview

Pattern shift: Mohammed Khalil Alsayed, CEO, Ithmaar Development Company, on residential housing trends, office supply and how technology is changing the modern market
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Interview:Mohammed Khalil Alsayed How are land scarcity, rising utility costs and a bear market affecting home ownership and lifestyle expectations among the youth population? MOHAMMED KHALIL ALSAYED: The 2008-09 global financial crisis redrew the boundaries of what is considered luxury housing. Unsurprisingly, there is a greater awareness that providing large villas for each household is not sustainable. However, it would be incorrect to categorise this as a bear market, which is a more…

Overview

Over land and sea: China’s implementation of a new trade network is energising the global construction industry
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From 206 BCE to 220 CE, China’s Han dynasty fostered a booming trade industry for silk, a precious commodity in high demand among the elites of the Mediterranean. The Silk Road was the name given to the network of trade routes connecting the East and West at the time. Later, spices and other precious cargo would be traded using the system, fostering not only economic, but also cultural links between Asia and its contiguous continents. As such, the network became the information superhighway of its time as well, transmitting knowledge and expertise across distance and cultures. Extremely rapid economic expansion in China in the four…

Overview

Over land and sea: China’s implementation of a new trade network is energising the global construction industry
OBG
plus

From 206 BCE to 220 CE, China’s Han dynasty fostered a booming trade industry for silk, a precious commodity in high demand among the elites of the Mediterranean. The Silk Road was the name given to the network of trade routes connecting the East and West at the time. Later, spices and other precious cargo would be traded using the system, fostering not only economic, but also cultural links between Asia and its contiguous continents. As such, the network became the information superhighway of its time as well, transmitting knowledge and expertise across distance and cultures. Extremely rapid economic expansion in China in the four…

Interview

Confidence builder: Sheikh Mohammed bin Khalifa Al Khalifa, CEO, Real Estate Regulatory Authority (RERA), on upgrading operating standards
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Interview:Sheikh Mohammed bin Khalifa Al Khalifa How is real estate performing currently, and what input will the RERA have in shaping the future of the real estate market in Bahrain? SHEIKH MOHAMMED BIN KHALIFA AL KHALIFA: The real estate market is cyclical by nature and currently trending towards the lower end of the cycle. This is challenging, not just in Bahrain but across the GCC and in many other major markets globally. The RERA’s primary objective is to develop an ecosystem that…

Overview

Under one roof: Affordable housing and high-end commercial space are the leading segments for growth in an expanding market
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Real estate in Bahrain has remained resilient in the face of successive macroeconomic challenges, maintaining a positive – albeit subdued – growth trajectory in recent years even as rental and occupancy rates declined across the residential, commercial, and hospitality segments. While developers have struggled with persistent oversupply and weakening demand – particularly for luxury residential space – lower property prices have created new opportunities for businesses in the kingdom,…

Overview

Urban adaptation: Rapid urbanisation and young, growing populations put pressure on emerging markets to solve housing deficits
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Urbanisation is a mega-trend redefining contemporary life in both developed and emerging markets across the world. This mass rural-to-urban movement of people and expansion of cities to absorb formerly isolated villages is a relatively recent phenomenon, at least in the developing world. According to the UN, in 1950, 751m people lived in urban areas; however, by 2018 this number had risen to 4.2bn, equivalent to roughly 55% of the world’s population. By 2050 the UN estimates that this figure will rise to 68%. This growth will not be distributed evenly, but rather disproportionately concentrated in the developing world, with high rates…

Overview

Urban adaptation: Rapid urbanisation and young, growing populations put pressure on emerging markets to solve housing deficits
OBG
plus

Urbanisation is a mega-trend redefining contemporary life in both developed and emerging markets across the world. This mass rural-to-urban movement of people and expansion of cities to absorb formerly isolated villages is a relatively recent phenomenon, at least in the developing world. According to the UN, in 1950, 751m people lived in urban areas; however, by 2018 this number had risen to 4.2bn, equivalent to roughly 55% of the world’s population. By 2050 the UN estimates that this figure will rise to 68%. This growth will not be distributed evenly, but rather disproportionately concentrated in the developing world, with high rates…