A real estate executive of one of the Gulf’s largest real estate developers has hailed Bahrain as a ‘boomtown’ and claimed the huge volume of real estate investment in Gulf is set to continue.
According to Abu Dhabi Investment House’s CEO, Rashad Janahi, reservations for recently launched (24/07/06) The Lagoon Bahrain, the region’s first freehold commercial development on Bahrain’s US$1 billion Amwaj Islands, have passed the 60 per cent mark.
“The speed with which investors are reserving this project consolidates our belief that the freehold real estate market in Bahrain and indeed throughout the Gulf is here to stay.”
Janahi suggests that the high level of uptake is riding on the back of the remarkable growth in tourism and, indeed, Gulf populations: “Tourism-driven retail and hospitality developments throughout the Gulf region are continuing to drive the economy.
“New shopping centres, leisure attractions and hotels are enticing ever-increasing numbers of holidaymakers both from throughout the world and within the Gulf, driving more investment as a result.”
The Kingdom achieved the highest tourism growth in the GCC (Gulf Cooperation Council) during the first quarter of 2006, with tourist arrivals soaring 30 per cent, way ahead of the nearest rival Dubai, which achieved seven per cent growth.
Bahrain this summer saw the occupancy of its five-star hotels increase by a remarkable 20 per cent from 2005’s numbers.
Abu Dhabi Investment House’s executive director of real estate, Nicholas Fraser, explained the confidence spreading through the Gulf region, suggesting that growth in the real estate sector has been further hiked in recent months with the shift from the residential market towards commercial property development.
He said: “One reason that Dubai is the biggest destination brand in Arabia is due to its introduction of the residential real estate freehold concept, where individuals could own their properties for a period of years. Dubai not only introduced this before other cities, it also allowed a much easier flow of expatriate visitors and residents than its regional counterparts.
“Bahrain has now taken the lead in the area of commercial property, with The Lagoon Bahrain providing premium freehold opportunities for new concept food and beverage outlets and boutique retail, a first for the Gulf, which has previously only offered rented commercial space.”
In tandem, Bahrain has upped efforts to build its tourism infrastructure with construction underway on theme parks, entertainment venues, hotels and property, and many more plans are said to be in the pipeline.
Fraser added: “The 2004 addition of Bahrain to the Formula One Grand Prix circuit gave tourism to the island as great kick. It consolidated the Kingdom’s place on the global tourism map. Bahrain is now a name known throughout the globe.
“The Lagoon Bahrain is set to join the list of landmark ‘must visit’ destinations for visitors to the Gulf.”
The one kilometre long, waterside, retail and dining destination sits in the company of London's Covent Garden and Cockle Bay Wharf in Sydney, with top-flight stores and restaurants open throughout the day and into night from as soon as September 2007.
