Monday, 31 May 2010
Bahrain's Real Estate Market Hot on the Heals of Dubai
The popularity and success of the real estate market in Dubai is well documented; but in sharp contrast Bahrain - which is one of the Middle Eastern property markets with the greatest potential - is little known and often overlooked.
Bahrain has a small but well establish luxury real estate market; and recent changes to legislation allowing for foreign freehold ownership of property within certain real estate developments in Bahrain has created a surge of investor and consumer interest in the kingdom.
The kingdom of Bahrain has long been home to a large expatriate community, with expats mainly heralding from the UK, Europe and the US. Expatriates living in Bahrain generally enjoy an incredibly high standard of living, substantial tax free income and an inimitably luxury lifestyle - and the type of accommodation they seek has become the iconic style of real estate now for sale to foreign purchasers. Indeed, the real estate developments where foreign freehold ownership of title is allowed in Bahrain epitomize quality and opulence.
In recent years Bahrain has been working hard to diversify its economy away from oil by focusing on five main business areas; namely business & financial services, tourism, information technology, healthcare & education and telecommunications. As a result many more multinational companies have established bases and headquarters in the kingdom which have created more employment opportunities and in turn attracted more international executives and their families to Bahrain.
This influx of foreign residents to the kingdom of Bahrain has resulted in a thriving rental real estate sector which has further helped to underpin an already incredibly successful economy. Recently Bahraini officials began to realize the potential of the real estate sector if they allowed for foreign freehold ownership, and this led to legislative and constitutional changes and the officials have been rewarded for their foresight by the creation of an incredibly popular and successful property market.
It’s a fact that many of the expats living in Bahrain are now taking full advantage of their right to own freehold title to real estate. It is also a fact that there is still an increasing requirement for quality accommodation to let out in Bahrain and this is pushing rental rates sky high. Both of these facts mean that real estate investors have a property market ripe for exploration in Bahrain with immediate income achievable from the rental sector and the release and realization of capital appreciation easy to achieve with a market hungry for completed resale property.
Therefore real estate investors looking for a market with more room for expansion than Dubai has, a market as equally popular with expatriates as Dubai is and a market offering property as magnificent as Dubai does need look no further than Bahrain.