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5 of the Newest Additions to the Burgeoning Bahraini Market
1. 5 of the Newest Additions to
the Burgeoning Bahraini
Market
Dr. Ehsan Bayat
2. 5 of the Newest Additions to the
Burgeoning Bahraini Market
As early as January 2016, market forecasts predicted that Bahrain would withstand the adverse
economic impacts of a waning oil industry. Infrastructure investments were expected to keep the
real estate market afloat, with notable projects including the expansion of Bahrain International
Airport and several government housing developments. Additional analysis at the time pointed to
residential real estate as an advantage for Bahraini developers as compared to other construction
firms in the region.
The real estate market has lived up to expectations. Local reports have referred to the industry as
“resilient,” while others have called Bahrain a “safe haven” for investors. Low investment and
transaction costs seem to be the driving force in attracting such interest, both in and out of the
kingdom. High investment yields and growth in capital have also played key roles of late.
There were times in 2016 where investors could find property in Bahrain for less than half the
price of that in the UAE. General living costs have also caught the attention of expatriates looking
for property to buy or rent. Yet even with these low prices, the value of real estate has grown by
as much as 400 percent in various areas since 2006.
3. 5 of the Newest Additions to the
Burgeoning Bahraini Market
Confidence in Bahraini real estate remains on the rise. In fact, analysts describe the current trend
as part of a two-year boom that has motivated multiple companies to open up for business.
Construction businesses have, in turn, responded to escalating supply and demand and
expanded their output by roughly 7 percent in 2015 alone.
This second year of significant growth actually traces back about a decade, when the government
decided to pursue projects to diversify the economy. Real estate and tourism have been the main
pushes in this effort, which has delivered positive returns. For example, one source measured an
11 percent growth in tourism in 2015, with total revenues projected to reach $1 billion USD by
2020.
Though Bahrain is considerably small geographically in comparison to other markets, industry
professionals expect the current upward trajectory to continue. Several real estate companies
have recently announced major additions to their portfolios at events such as the 2016 BCCI
Business Roundup, held at the Bahrain International Exhibition and Convention Center. One
standout is Bahrain Real Estate Investment.
4. Bahrain Real Estate Investment
More commonly known as Edamah, Bahrain Real Estate Investment is the real
estate subsidiary of Bahrain Mumtalakat Holding Company. Edamah currently
oversees a 60-property portfolio with multiple other key investments, such as a
$930 million USD tourism development on Hawar Islands off the Bahraini coast.
At the 2016 BCCI Business Roundup event, the firm presented five additions to its
holdings that are expected to bolster the tourism and commercial sectors of
Bahrain. Here is a brief overview of each.
5. 1. Sa’ada
A waterfront development, Sa’ada will cost roughly $117 million USD and will be
built in a series of two phases, the first beginning in Q1 of 2017. First, Edamah will
construct a marina and a variety of restaurants and entertainment venues. The
second phase will add a four-star hotel and a car park that allows easy access to
both the hotel and the souq, or marketplace.
6. 2. Development in North Hawar
The North Hawar development will also begin to take shape in 2017. In recent
months, Edamah has enlisted a team of consultants to perform environmental
studies and due diligence to ensure that the project lives up to its announced eco-
friendly standards. In addition other plans for the island, the North Hawar project
will help create an estimated 3,000 tourism jobs.
7. 3. The Terminal
Edamah will also construct a multi-story car park in Adliya, located in Manama,
Bahrain. The area is a popular cultural destination known for its food. More than
300 parking spaces will create greater access to some of the top restaurants and
cafes in Adliya. The Terminal should reach completion by the end of 2017.
8. 4. Versaille Plaza
A medium-sized venture compared to other projects on the list, the Versaille Plaza
will function as a cultural hub with a French influence. Six units for food and
beverage, along with 13 retail units, will resemble the Versailles Palace in France,
and the surrounding landscape will reflect the design of the Versailles Gardens.
Edamah executives predict a 2017 completion date for the new plaza, which will be
located in Isa Town.
9. 5. Isa Town Retail Strip
Another addition to the Edamah portfolio set to open in 2017 is the Isa Town Retail
Strip. Based in the educational zone of Bahrain, this new shopping district will
comprise 24 units of office and retail space. The vision for this development is to
improve shopping convenience in the area and to introduce new jobs to the
economy, potentially in the thousands.