Bahrain property sector suffers
Bahrain's real estate market is passing through a critical phase and the situation is more serious than it was during 'Suq Al Manakh' crash more than two decades ago, a leading businessman has warned.
Nass Group of Companies managing director Sameer Nass warned that real estate market will lose reputation with investors, developers and property owners, in view of the market lacking regulations, controls and laws that protect the rights of all the parties.
"The time bomb that we have warned of has exploded and the victims started to fall, and there is no hope of rescuing them," he told our sister paper Akhbar Al Khaleej. "Bahrain's real estate market is currently passing through more critical circumstances than it had been at 'Al Manakh Market' more than two decades ago, he said.
"Hundreds of small investors and owners are affected. They are stuck after making investments in housing units in the private sector, and there is no way out," he said.
Mr. Nass anticipated that "an unprecedented crisis will be unveiled in the coming days, after the property prices will be adjusted and prices of buildings will drop drastically to remarkably low levels." "The currently offered prices no longer suit the real value of the unit or building," he added.
Prices in the Seef area have soared from BD20 per square foot to BD250 in less than 10 years, with similar price rises taking place in Juffair. However, prices corrected itself in Juffair, leaving a number of units and offices unoccupied, and prices are going to decline sharply at the Seef area as well, as a large number of newly showcased ready units are available in the market and many projects under construction, but work on some of them has been stalled.
- Quiet and wise: How Oman is transforming itself into a major logistics hub
- Revealed: the top real estate tycoons in the ME
- Why did no one invest in the Suez Canal during the Economic Summit?
- Who will pay for the fire at Dubai's Torch tower?
- From oxymoron to reality: introducing affordable housing in Dubai
- Bahrain’s Real Estate sector shows shift in key demand drivers as small gains continue in most sectors
- Expert: Bahraini construction sector to suffer
- Tamkeen steps up support for Bahrain’s Real Estate sector
- Momentum of 18 per cent growth of Bahrain’s property sector in 2008 to boost local carpets & floor coverings market