As part of the commitment to the national economy, Kuwait Finance House-Bahrain (KFH-B) on Monday launched a BD200 million affordable housing project within its flagship $3.2 billion Diyar Al Muharraq mixed-used housing project.
The project, with a total cost estimated at around BD 200 million (in excess of $500million), will have housing units ranging from three to five bedrooms with provisions for an extra bedrooms.
The KFH-B board of directors approved the project of building around 2,500 crafted affordable housing units within its multi-billion US dollar flagship real estate project, Diyar Al Muharraq, one of Bahrain’s biggest mixed-use residential urban developments.
“The investments at this juncture will proved to be a catalyst to stimulate the investments, creating jobs and on the top of it will provide affordable housing units,” Abdulhakeem Alkhayyat, Managing Director and CEO of KFH-B told a Press conference.
“As per the plans, the KFH-B will inject BD100 million in capital by the bank and its partners for the project. The investment is a further indication of the resolve and commitment of KFH-B to invest in the Kingdom of Bahrain and of the confidence it places in the country’s growth and prosperity,” Alkhayyat added.
Located on the northern shores of Muharraq, Diyar Al Muharraq is a unique self contained master-planned city that will provide a cohesive mix of residential and commercial properties with housing opportunities for over 100,000 people in 30,000 housing units, extending over an area of 12 square kilo metres.
KFH-B is the major investor in the project, the total investment value of which has been estimated at $3.2 billion.
The construction of the mockup villas will be kicked off in May and tentatively completed by September 2011. The construction work for the first phase units is expected in the beginning of the third quarter of this year.
“The private sector has responded positively to the Government of Bahrain’s call for more low-cost housing. Our role extends to both the development of projects and their financing. Bahrain faces a shortage of affordable housing for the lower and middle income segments of the market, a situation that is not expected to show rapid improvement in the foreseeable future. It is crucial that the public and private sector combine their efforts to accelerate the delivery of housing for these segments in the short to medium term,” he said.
“The Government social housing list currently has households on it that have been waiting for a long time, during which time the number has exceeded 53,000 and still showing an annual growth of around 4,000. KFH-B is constantly looking for ways to address, God willing, this very real need for crafted affordable housing,” he said.
“It is alarming to note that the void between supply and demand in housing is steadily increasing. Through the Diyar Al-Muharraq crafted affordable housing programme, KFH-Bahrain is trying to contribute proactively and go a step further in addressing the housing problem in the Kingdom,” he added.
“KFH-B will provide financing schemes for potential buyers however; other banks are welcome to provide more financing options. The sales of the housing units will commence by the last quarter of 2011, once the mock ups are completed so that prospective clients have the option to choose the interior design they prefer.
“To avoid market speculation, the developing company will reserve a certain number of homes to introduce into the market with acceptable prices in the event speculation is introduced onto such homes in order to maintain the stability and avoid a sudden rise in prices.”
“For every group of 400 – 500 units, there will be a community center which will include day to day shops, play grounds, a masjid and other necessary amenities. The project is unique in that it will include a fully integrated modern infrastructure including roads, street lights and landscaping and will be within a walking distance from public water fronts, public beach fronts and public parks.”