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Mega real estate companies and developers introduced innovative ways to rebuild confidence in the Bahrain property market during the three-day Bahrain International Property Exhibition (BIPEX).
The seventh edition of the kingdom's premier property show was organised by the Bahrain Society of Engineers (BSE) and held under the patronage of Deputy Prime Minister Shaikh Khalid bin Abdulla Al Khalifa.
BSE president A Majeed Al Gassab said: "BIPEX marks the return of investors' confidence to the realty market. We have all come with a sense of hope, a growing belief that the worst is over and BIPEX 2010 will see the ushering in of renewed growth and prosperity in the sector.
"I personally don't think this is a false dawn because there are definite indications that Bahrain's economy is entering a positive growth phase after a period of stagnancy and its reflection will definitely be seen in the real estate sector.
"In fact, all consumer surveys point to a return of confidence in the market, which is the best news I can give you at the moment."
BIPEX organising committee chairman Mohammed Khalil Alsayed added: "We appear to be witnessing a return of confidence to the property market and we are delighted the exhibition provided investors, developers and buyers the opportunity to analyse the feedback they have been receiving on current market conditions. It provided the ideal platform to gauge the response and reactions of end-users and help fine tune their strategies for the immediate future.
"The level of hope and optimism generated among all participants is a welcome development for the sector and the country as indicated by over $55 billion (around BD 20.7 billion) worth of real estate assets put on display as compared to last year's figure of $52 billion.
"Visitor numbers were healthy, with 7,500 footfalls recorded over the duration of the exhibition. And judging from the number of enquiries made at the various stands, we feel this is an indication of genuine interest from buyers looking for the best available properties with world class amenities. Many of the exhibitors have shown an equal measure of enthusiasm, promising to return to BIPEX for next year's show."
Le Reef project director Adnan Bashir said: "We are doing reasonably well in the market because it is on the Reef Island, which is going to be a premium property in Bahrain. We are on schedule and will be finishing the project in eight months time. Apart from that, Le Reef is not your regular apartment building. We have different categories of apartments - anything between 100sq/m to 12,500sq/ft; from one bedroom apartments to penthouses.
"We are not under a huge amount of pressure for sales because we know that the market is bad. We expect Saudis and people living and working there to invest with us.
"Investors are not happy with what happened in Bahrain in terms of the massive projects such as Marina West and Amwaj Gateway or Villamar.
"So, people sort of lost faith in our projects. If I give a price right now to an investor he will ask 'What are you talking about?' because I am not showing them what they are getting. Give us eight months and people will be able to appreciate what they are buying.
"Right now we need to regain people's trust and I believe we will be doing wonders by the second half of next year."
The expo hall was filled with impressive project models and large stands with managers who had various ideas on how to regain investors' trust.
Christopher Sims, chief executive officer of Naseej, a fully-integrated real estate and infrastructure development company, told GulfWeekly that there is currently a huge demand for value-housing in Bahrain and they have ways of delivering these to the customer.
He said: "Naseej is a highly professional property development and investment organisation which is 100 per cent demand driven. Every real estate developer should be demand driven and only build to the market's needs. In that respect the real estate industry is identical to the motoring industry. They only build cars that people would buy, do a lot of research and only deliver sports cars or 4x4s because market research tells them to. And real estate developers should do the same.
"For example, Rolls Royce can be found at one end and Ford at the other. Ford certainly sells more motor cars than Rolls but both are fundamentally successful companies. Why does Rolls Royce not build as many cars as Ford? It's because their market is much smaller and they only deliver a product to that market.
"So, we do exactly the same. Right now there is demand for affordable housing. Bahrain's value housing market needs 50,000-65,000 housing units, now.
"We, at Naseej, aim to satisfy that demand by delivering a product at a price individuals can afford and our market research suggests that product range is from BD50,000 to BD90,000.
"We also want to introduce the rent-to-buy ideology to our customers where they will rent their villa for five to 10 years with a certain percentage of the rent going towards the deposit.
"Then, at the end of their rental lease or when they pay the deposit they switch into a mortgage with one of our many suppliers. We have every major bank in Bahrain as a shareholder."
Davis Langdon, global construction consultants, were also pleased to take part in the event and are closely working with Naseej. Director Donn O'Shaughnessy said: "This is our first year at the exhibition and we are delighted with the response. We are a project management and cost management consultancy so we provide services for clients in the contruction industry.
"We are certainly seeing signs of more activity in the kingdom's property market and we have been receiving many enquiries over the last two months in Saudi and Bahrain. We also cover the Kuwait office. There are a number of opportunities coming through there too."
Other developers with ready-to-handover units made brisk sales at their stands. Capivest's Saar Central, a premier real estate project, features 82 two-storey villas located in Saar.
Nader Ali Qassab, Capivest director and board member of Sakan Development Company, said: "Our infrastructure is completed including water and electricity. Our external road has been laid out as well. Our land areas are extremely spacious and 30 villas have already been sold.
"We have received a lot of feedback in terms of the villas and, while the market was tough in 2009, people are taking a different approach to purchasing now. We are confident of the quality in terms of the other projects in the neighbourhood. We made a sale on the first day we unveiled our stand."
While some exhibitors made sales and others received positive feedback, customers left the event feeling rejuvenated and filled with hope.
Banker Abeer Al Baitam, from Budaiya, said: "I think that BIPEX is a good exhibition because it collects every single company under one roof - especially for individuals looking for villas or flats for rent or sale. I have been visiting BIPEX for three years in search of an affordable villa and I think this may be the year for me."
