Latest news with #Yazji
Zawya
07-04-2025
- Business
- Zawya
Bahrain's real estate sector ‘exhibits resilience in 2024'
Bahrain's real estate sector demonstrated resilience in 2024, navigating a slight contraction in transaction activity while maintaining overall stability, according to a new report by ASK Real Estate. The report highlights that transaction volumes in 2024 decreased by 4.82 per cent compared to the previous year, with 24,863 transactions recorded. However, the total transaction value experienced only a marginal reduction of 1.64pc, amounting to BD1.06 billion. This indicates a market trend leaning towards higher-value properties, suggesting continued interest in premium assets despite the dip in transaction numbers. Land, residential, commercial, and industrial property rates remained stable throughout 2024. This stability is seen as a positive sign, reassuring investors and developers of the market's steadiness. The hospitality sector continued its positive trend, with hotel occupancy rates rising from 52.88pc in 2023 to 54.85pc in 2024, a 1.97pc increase. The Average Daily Rate (ADR) also improved by 3.76pc, reaching BD63.80, and Revenue Per Available Room (RevPAR) increased significantly by 8.36pc, to BD37.07. These figures reflect Bahrain's growing attractiveness as a tourism destination. Karim Yazji, chief executive of ASK Real Estate, emphasised that the market's resilience reflects strong investor confidence. 'The real estate sector's consistency and reliability highlight the abundance of investment opportunities available. The government has played a pivotal role in driving sectoral growth by enhancing transparency and providing accessible, data-driven insights to stakeholders.' Mr Yazji added, 'The encouraging indicators outlined in the report reinforce the sector's contribution to national economic development, while strengthening Bahrain's position as a premier investment destination in the region. Between 2021 and 2024, we've seen exceptional growth grounded in sound fundamentals.' The report provides a broader economic context, noting that global economic growth remained moderate in 2024, around 3.2pc, and was hampered by factors like persistent inflation and tighter monetary policy in the first half of the year. In contrast, GCC economies demonstrated robust growth in 2024, driven by high oil prices and diversification efforts. Bahrain's economic highlights in 2024 include advancing to 21st globally in the IMD World Competitiveness Ranking, attracting $2.4 billion in investments through the Golden Licence initiative, and significant investments by the Abu Dhabi Fund for Development. The report delves into specific sectors, noting the stabilisation and adjustments in retail, office rentals, industrial spaces, and residential properties. Off-plan sales remain attractive, particularly to foreign and GCC national buyers. It also emphasises the growing importance of sustainability in the kingdom's real estate sector, outlining the benefits and opportunities for adopting green building practices. Looking ahead to 2025, the GCC economies, including Bahrain, are poised for continued growth, driven by diversification efforts and adjustments in oil production. avinash@
Trade Arabia
06-02-2025
- Business
- Trade Arabia
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.
Zawya
28-01-2025
- Business
- Zawya
Bahrain real estate sector set to surge
Bahrain's real estate sector is poised for significant growth in 2025, driven by a confluence of factors including major infrastructure projects and investor confidence, according to Karim Yazji, chief executive of ASK Real Estate. Speaking at a media briefing yesterday, Mr Yazji said: 'The real estate sector in Bahrain achieved remarkable success and sustainable growth in 2024. In 2025, we expect this positive momentum to continue, bolstered by the launch of new real estate projects and the adoption of national strategies to attract investments and drive growth.' A report by ASK Real Estate presented during the briefing revealed that while transaction volumes dipped by 18.23 per cent to 4,206 in the third quarter of 2024, the total transaction value surged by 17.92pc to BD320.71 million, indicating a shift towards higher-value properties. This suggests a continued appeal for premium properties within the market. Land, residential, commercial, and industrial rates remained stable, suggesting a balanced supply and demand dynamic. This stability is expected to boost investor and developer confidence. The hospitality sector saw positive momentum with occupancy rates inching up to 51.17pc. Average Daily Rate (ADR) increased by 2.90pc to BD63.13, while Revenue Per Available Room (RevPAR) rose by 3.56pc to BD32.29. These figures reflect Bahrain's growing tourism appeal. Highlighting the transformative role of infrastructure in the sector's prosperity, Mr Yazji noted: 'Infrastructure projects are crucial to the success of real estate developments. For instance, real estate in Diyar Al Muharraq, Amwaj, and Dilmunia Islands has seen increased interest from investors and end-users following the opening of the Muharraq Ring Road.' He emphasised the impact of other key infrastructure projects, such as the expansion of Al Fateh Street and Janabiya, along with the tender announcement for the development of Riffa Street. 'These vital road projects not only support various real estate developments but also align with Bahrain's urban expansion, enhancing connectivity and creating opportunities for sustained growth in the real estate sector,' he added. Mr Yazji highlighted the initiatives of banks in Bahrain to offer affordable housing financing, emphasising the critical role such financing plays in driving the overall development of the sector. He also discussed the advancements in Bahrain's real estate legislation, including a recent law mandating property owners and real estate developers to establish infrastructure for their projects. The chief executive of ASK Real Estate also highlighted the hospitality sector as a key area experiencing remarkable growth in Bahrain. The kingdom has recently seen the opening of several prominent hotel establishments, including the Conrad Bahrain Financial Harbour Hotel, Onyx Rotana Hotel, and Hawar Resort. Mr Yazji further emphasised the importance of Bahrain's structured tendering and auction processes, describing them as foundational pillars of the real estate sector's growth. 'The real estate sector is poised to play a pivotal role in Bahrain's economic growth,' stated Mr Yazji. 'The kingdom's strategic focus on luxury real estate, investor-friendly policies, and continuous infrastructure enhancements have strengthened the resilience of the real estate market and supported its steady growth this year.' According to studies conducted by ASK Real Estate, 2025 is projected to see a surge in demand for high-quality and luxury projects, continuing to attract affluent individuals, entrepreneurs, and investors. 'We anticipate sustained growth in real estate demand throughout 2025, fuelled by the confidence of residents and foreign investors in the sector. Many are choosing Bahrain as a destination to reside, conduct business, or invest in property,' Mr Yazji added. The real estate expert concluded by emphasising Bahrain's competitive residential unit prices compared to economically similar countries. This advantage, coupled with attractive incentives from real estate developers and marketing firms, along with accessible financing options provided by banks, is expected to further invigorate the market and support sustained growth in the real estate sector.
