..

Real Estate

  • Written by News Company


RERA: a necessary steps in a pivotal phase

Ever since the first day it was launched on the first of March 2018, Bahrain’s Real Estate Regulation Authority (RERA) has played a pivotal role that has been gaining more prominence and importance till the present day. The reason behind launching this organization was the need for the existence of an independent governmental authority that supervises the activities of buying and selling properties in the Bahraini kingdom, supports its real estate market, and issue laws and regulations that organize it.

However, RERA’s duties were not restricted to the aforementioned points only. It also provides training programs and courses for the real estate market professionals and coach them on the best practices and most recent updates in the market; in addition to that, RERA is responsible for issuing profession licenses for the companies and individuals working in the real estate market.

This step was considered a necessity to a great extent, since the Bahraini investment environment and the property market have been enduring a lot of issues and difficulties because of the poor enforcement of laws and contracts and the inability to guarantee the rights of the minority investors. It is worth mentioning here that the island knigdom’s real estate investment market has been ranked as the 62nd among the countries with the lowest transparency rate.

On the other hand, as per a report issued by the World Bank by the end of 2017 to assess how easy it is to start and run a business, and despite the fact that Bahrain has won an advanced ranks in many indexes, it has recorded low ranks in some vital indexes. Most notably, Bahrain was ranked the 108th country in the protecting minority investors index, the 111th in enforcing contracts index, and the 90th in resolving insolvency index.

Nonetheless, there are multiple advantages that make investing in Bahrain’s real estate a strong attraction for both the regional and international investors; right now, the Bahraini Kingdom maintains the highest return on investment in the whole GCC region as its ROI ranges from 6% to 15%.

In addition to that, the kingdom has achieved high ranks in other indexes. For example, it was ranked as the 75th easiest country to start business in; the 47th in dealing with construction permits; the 79th in getting electricity; the 25th in registering property.

RERA’s achievements in four months:

It should be mentioned here that, right after its launching, RERA has obliged the companies and individuals working in the industry to issue their profession licenses from it before the end of August 2018. So far, 45 real estate development licenses and 221 real estate brokers licenses have been issued which amount up to 70% of the total number of workers in the Bahraini real estate market. Also, to support the transparency in the property market, the information regarding those licenses is available on the official website of RERA.

On the other hand, RERA has signed a memorandum of understanding with the Bahraini institute for bank and financial studies to provide professional courses for the real estate industry individuals.

RERA has also issued a new license to allow the real estate developers to research and test the market before requesting a license for a specific new project. So far, six Bahraini real estate developers have acquired that license.

What does RERA seek to achieve within the near future?

It is safe to say that RERA still has a lot of initiatives and laws that it is planning to adopt or issue in the upcoming period. For example, it has been announced that RERA is planning to issue a new rule within the third quarter of 2018 which commits the property developers to create a householders’ association for each of their projects. This rule aims at encouraging the householders and property owners to play an active role in managing the property and its maintenance since most of the residential towers in Bahrain do not have their own household association.

With all of these changes that took place and are still taking place within the Bahraini property market, it is obvious that the investment environment in Bahrain is going through some pivotal shifts which should help overcome its investment obstacles and, therefore, push the kingdom into being one of the leading investment attractions in the GCC region in the near future.

 

Politics

George Neophytou - Don’t be taken for granted

George Neophytou George Neophytou, independent candidate for Gippsland East is concerned our electorate is being taken for granted. For too long Gippsland East has been the electorate that Labor...

Prime Minister's media conference at Glenelg

DOORSTOP WITH PREMIER OF SOUTH AUSTRALIA HON STEVEN MARSHALL MP, MINISTER FOR DEFENCE, THE HON CHRISTOPHER PYNE MP AND NICOLLE FLINT MP, MEMBER FOR BOOTHBY GLENELG, SA SUNDAY 14 OCTOBER 2018 SUBJEC...

Canavan calls out Shorten’s resources schtick

Resources Minister Matt Canavan has called on Labor to state one clear position – just one, not two or three - on the future of Australia’s thermal coal industry.   Following a string of confused ...

Business News

Brava Lingerie

Brava Lingerie’s Customer Service The Perfect Fit; 2018 eftpos ARA Australian Retail Awards winners When Lin Windram and daughter Maxine launched Brava Lingerie 12 years ago due to their own negati...

Australian handmade soaps woo China buyers

Natural handmade soaps are experiencing a boom across mainland China with households prepared to pay a premium to buy them.    Driven by a growing disillusionment with cosmetics products that contai...

How to Improve the Work Environment for Employees

As an employer, there are many things it takes to hold a business together. As well as ensuring you market it and keep a steady stream of income, managing your employees effectively is also critical...

Travel

The Best Moment of Your Life from Lonely Planet

Discover 100 Life-Changing Travel Experiences with The Best Moment of Your Life from Lonely Planet What’s the best moment of your life? It’s a simple question to ask, but a more challenging one t...

Travel expert Anthony Goldman outlines what's trending for elite travellers

LOVERS OF LUXE DRIVING TRAVEL TRENDS   Travel expert Anthony Goldman outlines what’s trending for elite travellers in 2019 and beyond…   Media Release – 15 October 2018 - Travellers are splurgin...

End of year travel can deliver big benefits if booked on certain credit cards

With more than 56% percent of the Australian population now owning a passport, it is no surprise the Australia Government recorded over nine million trips overseas at 2017 financial year end.   A wh...