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A LEADING property executive today hit out at housing's doom-mongers and says he remains upbeat and positive about developments in Bahrain.
Adnan Bashir, manager of business development and marketing at Le Reef, maintains that property prices in the kingdom were not inflated like some countries in the Gulf region and there has been no 'bubble' waiting to burst.
Although some property projects in Bahrain have been put on hold due to a dearth of buyers, the Le Reef project located in the prime Bahrain Reef Island development was launched in May despite the economic downturn.
"Recession is more of a frame of mind here in Bahrain than a gaping reality," he claimed. "Yes, there is a downturn in numbers and there is a financial crunch to a certain extent but the situation is not as bad as some people make it.
"Not every country has been hit by the global recession in the same manner and not every country has suffered a dramatic dip in property prices.
"I believe that the returns are going to get normalised. In fact, an important lesson to be learned from this downturn is for buyers to be less speculative and opt for properties that will offer real value and realistic returns.
"There will remain pockets of property in Bahrain and other GCC countries that will thrive and continue to do well. The art is to locate these pockets and invest there."
At a time when individuals are holding on to their cash and not investing, Le Reef is still going ahead with construction and is on track for completion in the first quarter of 2011.
"There is a lack of confidence in buyers and we want to put out a positive message which is why we are asking for realistic prices. We started selling in May and to date have sold 20 per cent of our apartments.
"Ahad Holdings, the holding company of Le Reef, has the resources to finish the project and this reflects in our payment plan. Furthermore, we are not selling off plan and are setting new benchmarks in construction.
"The property business has flourished and will continue to do so.
"Investment in property has always been the biggest business worldwide because it yields dividends in the form of rental and appreciates in price and is a natural hedge against inflation.
"The local property prices are all higher than what they were just two years ago. Even though some property prices went up more than 300 per cent between the three year period starting from 2005 to 2008 they are still higher in the case of the GCC by 100 per cent from what they were in 2005. This on an annual basis is a return of more than 30 per cent and a great return on an investment," said the 41-year-old property consultant from Pakistan.
Bahrain's property market soared in previous years outpacing the stock market on occasions. Prior to 2008, the kingdom's land values tripled for prime residential areas since 2005 and the rental prices were no different. At present, the property boom albeit has slowed down but has not gone bust.
The philosophy behind Le Reef's project is to educate potential buyers and measure their responses.
It is the reason why the developers have set up an information centre in the Ramadan and Exhibition Tent at the Ritz Carlton hotel. "It is part marketing but mainly it is to say to people that property still is the best investment.
"It seems that all the developers in Bahrain are dead but we think this is the right time to buy!" said Mr Bashir.
