06-02-2025
Mortgage financing for Bahrainis soars to $8bn in 2024
Bahrain's mortgage loans accounted for the largest share of total personal loans granted to the kingdom's citizens in 2024, surging to hit BD3.03 billion ($8 billion), thus posting a 5% growth when compared to BD2.88 billion ($7.6 billion) the previous year, according to ASK Real Estate.
The real estate loans constituted 50.8% of total loans and financing extended during the year, which also included personal loans, vehicle loans, and other financing options, stated ASK in its report.
On the solid growth, CEO Karim Yazji said: "The sustained growth in mortgage financing reaffirms the crucial role of commercial and Islamic banks in supporting and advancing the real estate sector. By providing diverse financing solutions and facilitating homeownership, banks are significantly contributing to economic expansion in Bahrain."
Yazji further emphasized that this growth reflects the resilience and attractiveness of Bahrain's business environment, driven by the strong momentum of real estate projects in 2024, and noted that this surge in activity has heightened demand for personal financing solutions, making homeownership more accessible through tailored banking facilities.
"Collaboration between real estate developers and local retail banks has played a pivotal role in stabilizing the housing sector, effectively mitigating the impact of interest rate fluctuations and global economic uncertainties," stated Yazji
"These efforts have ensured the availability of housing solutions that meet the needs of Bahraini families despite economic challenges," he noted.
Yazji underscored the importance of banks' participation in government-backed housing finance programmes, such as 'Tas'heel' and 'New Mazaya' which have significantly accelerated housing service delivery to citizens.
These initiatives, he stated, combined with comprehensive banking facilities, have provided Bahraini families with a broader range of financing options tailored to their needs.
According to Yazji, the surge in real estate demand was mainly due to Bahrain's favourable economic policies, alongside the Central Bank of Bahrain's regulatory framework and the financial incentives offered by local banks.
