Mazaya Monthly Real Estate Report - OCTOBER 2014
This legal framework – as sought – will
also improve the trust afforded by local and
foreign investors, and create a wider range
of real-estate products within the market.
The Al Mazaya Weekly Report drives the
Bahraini participation at the CITYSCAPE
Global Exhibition in Dubai, as evidence for the
revitalization of the real-estate momentum in
Bahrain and as target of foreign investment,
4
Logistics has an direct impact pushing
the wheel of the commercial sector
forwards, enhancing exports, tourism
and transport. It is worth mentioning that
any improvement in the logistics supplied
adds more viability to the transportation of
individuals and cargo across the borders.
Logistics in the State of Bahrain is
speculated to hold its current contribution
to GDP, soon expected to hit 7%. The
Al-Mazaya Report further elaborates on
the positive ramifications on the Bahraini
economy when the planned networks of
railway and airport expansion materializes,
equally impacting average individual
income on the national and regional levels.
Such momentum is moreover expected
to accelerate the competitiveness
in logistic supplies in the GCCs, in
order to keep pace with the overall
improvement taking place in the sector.
Lastly, Al Mazaya Report points to the
state of uncertainty the Bahraini real-
estate sector has recently witnessed,
causing a draw back in the real-estate
products – especially residencies –
originally rooted from less investment
being undertaken. The reduced supply of
residential units – while facing increasing
demand – drove the price up by more
than 200% in some certain areas. The
peak of prices soon pervaded the State.
wherein Bahraini real-estate companies had
their chance to exhibit major designs for
leading projects in diverse fields, whether
commercial, residential or investment-
orientated. TheCITYSCAPEGlobal Exhibition
adds more significance to Bahraini real-estate
companies since they had the chance to
walk through many investment opportunities
available in the fields of light industries,
logistics and commercial activities related to
real-estates. Tourist and entertaining projects
were mostly exhibited at CITYSCAPE
Global-Dubai, benefiting from the boom and
the recovery of the sector in Bahrain and
the region as a whole. These overall factors
ultimately add up to the contribution of the
real-estate sector in the national economy.
The increasing significance the logistics sector
is adding to the national economy of the State
of Bahrain is well noted in the Weekly Report
of Al Mazaya Holdings, for the communication
and commercial networks it helps to
establish within the GCCs and worldwide.
Lease rates, on the other hand, regressed
by 15% in some locations, compared with
those of the same period in 2013. The
regress in lease rates was affected by
more supply of residential units during
some terms, or clients preference to certain
locations in the capital of Al-Manama
in other terms, whereas other locations
in the capital were able to sustain their
prevailing prices. The improving economic
climate helped to regain the trust exerted
in the real-estate sector and gradually
increase growth rates, simultaneously
benefiting from government investments
driven into the sector, along with the
return of investors therein. The Real-
Estate Development Regulation recently
issued had a significant role, adding to the
energy of the national economy, regulating
many components of the sector, and
maintaining the rights of the contractors,
owners and investors. This Regulation is
highly regarded by the VIPS in the sector
for its ability to support the real-estate
investment environment in the Kingdom
of Bahrain, it being one of the tangible
sectors affecting the economy of the State.
