Diyar Al Muharraq inks $730m social housing deal
Government buys 3,100 units for social housing project; construction to start in October with handover in 2018
Bahrain’s Ministry of Housing has penned a deal with urban developers Diyar Al Muharraq to buy 3,100 residential units at a cost of $732m (BHD276m) which will be used for the ministry’s social housing programme.
The deal was signed by the Minister of Housing, H.E. Basim Al Hamer, and the Chief Executive Officer of Diyar Al Muharraq, Dr. Maher Al Shaer, in the presence of the Chairman of Kuwait Finance House (Bahrain), Mr. Ahmed Alaiban and top officials from both parties and invited guests.
The homes will be built in the southern side of the project which is being built on reclaimed land on the northern coast of Bahrain
The project will cover 117,500 hectares and include residential and commercial properties, 30,000 housing units and will be home to over 120,000 people once complete – an estimated 10% of Bahrain’s population.
Diyar Al Muharraq will finance all construction works for the project, its associated primary and secondary infrastructures and community centres with support from Kuwait Finance House (Bahrain); key shareholders in Diyar Al Muharraq Project. Work on the site is due to begin in October this year with the target date for the handover of the residential units being December 2018.
The ceremony was attended by many senior government and royal officials, including Deputy Prime Minister and Chairman of the Ministerial Committee for Construction and Infrastructure, His Excellency Shaikh Khalid bin Abdulla Al Khalifa.
“It is indeed a pleasure to witness the signing of this agreement today which reiterates the high priority the government has given to Housing concerns in the Kingdom, through providing unprecedented innovative solutions for Housing services via the Social Housing Programme. This partnership affirms the private sector’s willingness to take on the responsibility of participation in the development of the local communities in which they operate,” Shaikh Khalid added.
Under the social housing programme, Bahraini citizens on a current waiting list will be able to buy their own home with considerable assistance from the government. If mortgage payments exceed 25% of the applicant’s take home monthly salary, the governemtn will step in and pay the difference.
Minister of Housing, H.E. Basim Al Hamer, said: “This is indeed a very important agreement as it is the largest agreement of its type for cooperation between the private and public sectors and will surely have far-reaching positive consequences for all the citizens of the Kingdom. Under this agreement, the Ministry of Housing will purchase 3,100 residential units from Diyar Al Muharraq which will be included in the Social Housing Scheme. Citizens who are already on the Ministry’s waiting lists to benefit from its Housing services, will have the opportunity to purchase those units through this programme in accordance with the pre-set terms and conditions, thus reducing the time they have to wait for their turn to avail Housing Services.”