Bahrain’s affordable-housing drive hampered by rising land prices

30 Jan 2013

(MENAFN) A new study by CBRE found that rising land prices are crimping Bahrain’s economic-housing programme, Arabian Business reported.

According to the study, Bahrain lacks around 50,000 affordable homes. However, developers are deterred by difficulties, such as accessing mortgages and the high cost of land.

In December, Bahrain’s government said it will allocate up to USD1.51 billion to construct 16,000 new homes.

Due to speedy population growth, Gulf countries are facing a deep shortfall of economic-housing. Nevertheless, many have boosted spending to meet shortfalls in the wake of the Arab Spring.

CBRE pointed out that even though the GCC Marshall Financial Support fund will help Bahrain meet its development needs, it will take years to achieve the goal as the waiting list continues to grow.

Bahrain has been in turmoil since protests erupted in early 2011 led by majority Shi’ite Muslims complaining of discrimination in the electoral system, jobs, housing, education and government departments.

The Gulf state’s property market has been negatively affected by the social unrest but is starting to show some signs of recovery, said CBRE. Activity is picking up in the apartment sector and rental rates have stabilized in most areas.

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