General Report on real estate trading index in the Kingdom of Bahrain till the third quarter (January to September) 2006

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HE Shaikh Abdulla bin Salman bin Hamad Al Khalifa, Head of SLRB stated that the Kingdom's real estate activity contributes significantly to the economic development process as one of the most important economic instruments of Bahraini GDP.

 

This activity seeks to attract a number of major real estate projects, which attract the attention of regional and international investors and a number of these projects had attracted the attention of Gulf and foreign businessmen, in addition to the processes of ownership and investment by citizens.

 

HE added that the Kingdom's real estate sector is characterized by rapid growth inconsistent with the Bahrain's rapid economic growth rates. The value real estate sector of investments in the Kingdom was more than BD619,307,829 until the third quarter, and the government played a major role in the improvement of the real estate sector through issuing amendments to laws and passing new regulations governing this sector.

 

Adjustment of registration charges which was passed by a Royal Decree in 29th May 2006 with respect to the cancellation of housing loans fees resulted in the speed up of the registration of properties by many citizens and investors, compared to the delay of registration over past years.

 

As regard to the results during the period, His Excellency the Chairman of the Bureau said that the results achieved until the third quarter 2006 indicate the continued recovery of the real estate market in the Kingdom of Bahrain, as the Kingdom's total value real estate transactions from the period from January to September 2006 amounted to BD619,307,829 compared to BD403,475,315 over the same period in 2005; an increase of BD215,832,514, and June 2006 was the highest month the real estate market recovery.

 

Regarding the governorates' trading ratio, the Capital governorate had the highest trading index among all governorates amounting to 40%, followed by Muharraq Governorate by 24%, Northern Governorate by 20%, Central governorate by 8%, and finally the southern governorate 7%.

 

The actual trading results of GCC nationals and foreigners were 8% of the total trading volume over the same period.

 

The total real estate trading value of the GCC countries and foreigners until the third quarter of this year 2006 was BD49,769,717, compared to BD35,908,222 over the same period last year.  Saudi citizens had the highest share compared to the share of other nationalities as they acquired 64% of the total trading transactions of GCC countries and foreigners. 

 

It is worth mentioning that the number of transactions between Bahraini citizens amounted to 92% of the total traded real estate.

 

Description

2006

2005

variation

Trading ratios

Remarks

Total Transactions

12,640

11,856

784

107%

 

Total Property trading

619,307,829

403,475,315

215,832,514

153%

 

January – June

399,451,894

278,334,774

121,117,120

144%

 

July

122,760,667

77,622,761

45,137,906

158%

 

August

49,374,882

25,096,478

24,278,404

197%

 

September

47,720,386

22,421,302

25,299,084

213%

 

Highest trading rate across governorates

247,742,984

-

247,742,984

-

The highest value of property traded in the Capital Governorate

GCC Trading and other nationalities

49,769,717

35,908,222

13,861,495

139%

The highest trading of KSA nationals

The Rate of property  traded by Bahrainis to foreigners

569,538,112

367,567,093

201,971,019

92%

Bahrainis trading represents 92% compared to foreigners rate of 8%

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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