MANAMA: The new real estate laws will serve as a catalyst to attract more investments in addition to ensuring the sector’s sustained growth.
“The new laws regulating the rents, which had already came into effect, and the upcoming law on the stalled projects in the Kingdom will help to boost confidence of investors in the real estate sector,” the Deputy Premier HE Shaikh Khalid bin Abdulla Al-Khalifa told The24X7News Bahrain (www.twentyfoursevennews.com).
The new development law introduced in July 2014 and which will come into force in February 2015, seeks to protect the interests of investors and developers by establishing a structure for such projects.
The new law ensures that the principles of integrity, transparency and competition in the current and future real estate projects in the Kingdom of Bahrain.
HE Shaikh Khalid who opened the second Bahrain Property Development Exhibition (BaPDEX II) being held at the Bahrain City Centre said that private sector plays a crucial role in the development of infrastructure projects.
Experts believe the new law will attract more investments into the real estate market in Bahrain and restore investors’ confidence in this growing market.
Key aspects of the new law include the regulation of the current application and investment procedures, procedures to place land up for investment and ways to award contracts and procedures to deal with complaints.
Organized by Bahrain Property Development Association, the expo which opened on Thursday will conclude on Sunday.
The Deputy Premier took a keen interest in the profile of the projects being displayed by the developers at the expo and applauded the efforts of the organizers.
Talking about the upcoming law on the stalled projects HE Deputy Premier confirmed that there were four projects and with the new law taking into effect by early next year the issue these delayed projects will be resolved.
Earlier, the Council of Minister approved a draft law on the settlement of distressed or stalled real estate development projects.
The draft law aims at fully addressing the issue while taking the necessary precautions to protect the interests of investors, both large and small.
“With over $2.8 billion invested in mega real estate projects in Bahrain, the new real estate law will stimulate the domestic investments as well attracting foreign investments,” according to Charles Russell law firm.
Developers, under the new law, will be required to obtain a license and are required to set up an account to allocate all the funds for the project to ensure that the funds raised from the market will be used for a specific project which provide high level of governance.