The size of the mortgage market in Bahrain reached $1.4 billion by the end of last month, making it one of the comparatively stable realty markets in the GCC (Gulf Cooperation Council).
“The completion of landmark projects like Amwaj lands, Durrat Al-Bahrain and many properties in Juffair has helped to keep the market at sustainable growth levels,” said R. Lakshmanan, chief executive officer of Sakana Holistic Housing Solution.
Lakshmanan, who was talking to the media during the handing over ceremony of the $25 million Nasmah Freehold Tower, said despite the soft market conditions, the new projects were being announced by developers to meet the growing demand for new housing units.
Talking about overall market conditions, he said realty has shown a sign of recovery but 2010 would remain a challenging year for mortgage companies and developers.
“With the slump in the real estate market land prices have declined by 15 percent while investment land nosedived up to 60 percent in 2009. The prices of residential units have seen a 20 to 25 percent decline in prices across the board,” he added