Investments into the Kingdom's real estate sector would continue to flow in notwithstanding the global credit crunch. The Property market was poised to grow consistently without any downswing, the Minister of the Prime Minister's Court, Shaikh Khalid bin Abdulla Al Khalifa asserted yesterday,
In all, the value of the ongoing and announced real estate projects was put at a staggering $30 billion, including current projects accounting for half of it.
Bahrain, he said, had become an attractive destination for various investments, mainly in the real estate sector, thanks to sound and contemporary legislation protecting the rights of investors, citizens and state, Shaikh Khalid said.
"Prices might get affected, but not that much. Despite the global financial crisis, the Kingdom's economic growth rates have been high over the past years and will continue to be so as its progress is founded on strong fundamentals," he said, after inaugurating the 2008 edition of the premium Property exhibition, BIPEX organised by the Bahrain Society of Engineers.
"We have no reason to believe there will be an adverse long-term impact on the real estate markets of the region. The GCC is fundamentally different not only because the origin of the current economic crisis has no corresponding equivalent in the region but also because our economic structures are not similar to the markets where the current crisis originated," the Chief Executive Officer of Ithmaar Development Company, Khalil Al Sayed said.
"There is credit squeeze, but the coordinated response from leading central banks in the world and the region provided a surge of confidence required for the overall financial health of the markets."
The cautionary approach by some players was more a 'wait and watch' game.
He exuded confidence that the Kingdom and the GCC region would weather the disturbance in the months to come and there was no impact at all in the medium and long term. In the first week of October alone, GCC Property firms announced or launched around $100 billion worth of projects in the current economic climate.
"The markets will not only stabilise but also come back stronger. Unlike Dubai, Bahrain market is not dependent on credit flow and speculative investors. There are no false values. Our market is conservative, the buyers astute and informed. These form a solid base for real estate projects, come credit turmoil or not," said Richard rowning, Chief Executive Officer of Riffa Views.
In all, the value of the ongoing and announced real estate projects was put at a staggering $30 billion, including current projects accounting for half of it.
Bahrain, he said, had become an attractive destination for various investments, mainly in the real estate sector, thanks to sound and contemporary legislation protecting the rights of investors, citizens and state, Shaikh Khalid said.
"Prices might get affected, but not that much. Despite the global financial crisis, the Kingdom's economic growth rates have been high over the past years and will continue to be so as its progress is founded on strong fundamentals," he said, after inaugurating the 2008 edition of the premium Property exhibition, BIPEX organised by the Bahrain Society of Engineers.
"We have no reason to believe there will be an adverse long-term impact on the real estate markets of the region. The GCC is fundamentally different not only because the origin of the current economic crisis has no corresponding equivalent in the region but also because our economic structures are not similar to the markets where the current crisis originated," the Chief Executive Officer of Ithmaar Development Company, Khalil Al Sayed said.
"There is credit squeeze, but the coordinated response from leading central banks in the world and the region provided a surge of confidence required for the overall financial health of the markets."
The cautionary approach by some players was more a 'wait and watch' game.
He exuded confidence that the Kingdom and the GCC region would weather the disturbance in the months to come and there was no impact at all in the medium and long term. In the first week of October alone, GCC Property firms announced or launched around $100 billion worth of projects in the current economic climate.
"The markets will not only stabilise but also come back stronger. Unlike Dubai, Bahrain market is not dependent on credit flow and speculative investors. There are no false values. Our market is conservative, the buyers astute and informed. These form a solid base for real estate projects, come credit turmoil or not," said Richard rowning, Chief Executive Officer of Riffa Views.
Source - Bahrain Tribune [24 October 2008]
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