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Bahrain's land prices are spiralling and showing no sign of slowing down, the CEO of the Bahrain franchise of the world's largest residential real estate organisation, Century 21, has said.
"Land prices in Bahrain continue to go up and up and are not going to go down anytime soon. Two years ago land in Juffair was under-priced at 18 to BD20 per sq ft. Now it is BD80 per sq ft and it's likely to rise to BD100 by June next year," said Century 21 Bahrain's CEO Abdul Wahed Al Kooheji, pictured right.
Mr Al Kooheji also announced that last month was Century 21 Bahrain's busiest and most profitable since the organisation opened a Bahrain office five years ago, selling more than $160 million worth of land in October alone.
The company has been involved in numerous high-profile developments in the kingdom including the soon-to-be completed Avare Tower in Seef and numerous off-plan high-rise residences. "When we came to Bahrain in 2002 we saw a huge market for apartments because there is a lack of land. The only way to build was upwards," he explained.
Early next year Century 21 Bahrain will launch projects in Juffair and Busaiteen, projected to cost $800 million and housing 2,000 apartments.
Mr Al Kooheji was adamant that Bahrain's real estate boom will continue and that supply is not likely to exceed demand for some time.
"Last year 7.2 million people visited Bahrain, that's 10 times the population. Obviously there is a demand for property, especially from Saudi nationals and people from around the GCC.
"Bahrain's population is also very young, 58 per cent is below 24 and these people need homes. They can't afford to live horizontally, it has to be vertically.
"It is a developers' market right now. There is plenty of demand but supply is still short."
He suggested that the creation of more hotels and resorts would also help the real estate market to flourish and refresh the economy.
However, Mr Kooheji also highlighted the challenges facing real estate developers and called for more stringent regulations to be instituted and for infrastructure to be established.
"It is an open-ended market and there are no exclusive listings so everybody is trying to sell the same thing. There is a lack of professionalism because of this and there are not laws in place to protect us," he explained.
"This is the largest sector in the economy now and all the banks are now involved in real estate meaning that banks and developers are fighting over work. It would be good have some regulations to help make the market secure and take it to the next level. If we want real estate to get where we want it to be we need infrastructure and regulations in order to develop."
