Home / NEWS / Bahrain house prices 'still too high'

Bahrain house prices 'still too high'

by Orlando Crowcroft on Jun 3, 2010

1 Comment

A residential area of Manama, Bahrain. Photo: Getty.

Locals in Bahrain are still unable to get on the housing ladder due to 'unrealistically high' prices, a mortgage summit in Manama was told today.

Speakers at the GCC Mortgage Summit 2010 in Bahrain also said that prices on the island would have to fall further before banks could afford to start issuing mortgages to local buyers.

Khalid Hamad, executive director of banking supervision at the Central Bank of Bahrain, said that while the economic situation in the region was good, since 2005 real estate prices have become inflated and bubbles have formed.

"Current prices are not affordable or realistic, and further falls are necessary and then economic fundamentals will start rebuilding market confidence," he said.

"Particularly in commercial real estate demand is weak and prices are unrealistically high. And for residential property the demand is in the low and middle income segment while the supply is in the luxury market."

Story continues below

FEATURED COMMENT

It is really surprising; during the recession periods which took more than 12 months where the real estate business not

1 Comments

Readers' Comments

STEVE ARZOUMANIAN (Jun 3, 2010)
KUWAIT
Kuwait

BAHRAIN HOUS PRICES
It is really surprising; during the recession periods which took more than 12 months where the real estate business not only was down but was frozen. The biggest housing project "rifa views" was kept closed more than 14 months. Now that it started moving but very slow because the buyers still are very few comparing to the volume of the project and the number of villas being constructed there. Then why the prices will go high? There is no competition either or visual boom in the real estate business in Bahrain. Adding to this the report of the author of this report informing about the low salaries of Bahrainis did not allow them to buy houses for themselves.

COMMENTS


Name *
Email *
City
Country
Subject: *
Comments: *
Math Question: *
Solve this simple math problem and enter the result. E.g. for 1+3, enter 4.	Refresh the image if not clear
	Remember me on this computer