Bahrain woos foreign investors
Bahrain : 21-Aug-2004
Bahrain could be the real estate market to watch in the Middle East, because it benefits from regulatory changes targeting foreign investors. The average rental in high-end office blocks in downtown Manama and the Diplomatic Area are $18 per square foot per annum. Average rents in secondary business locations are $8 per square foot. In 2001, Bahrain passed a decree allowing foreigners to own land in the country. This has contributed to increased demand. International investors can own high-rise commercial and residential properties, as well as those for tourism, banking, financial, health and training projects in specific areas. During the last two years, the real estate market in Bahrain has been growing steadily, both in terms of new construction and refurbishment.
Private developers are increasingly active in taking on infrastructure projects in developing areas and then selling serviced plots. Then there is the prestigious Bahrain Financial Harbour venture. The Harbour, located on the northern seashore of the main island, is under construction and will offer more than 500,000 square metres of office, residential, retail, dining and leisure space. Additionally, office space located in the Seef District in the 47-storey Almoayyed Tower, the tallest in Bahrain, is now available to potential tenants. Prospective investors are also eyeing another prime piece of development - the Al Areen resort, conceived as a mixed-use venture essentially targeted at an upscale clientele. The freehold status is expected to be granted shortly to the project.
