Sakana encourages partnerships in the real estate market

During a recent presentation to the Bahrain Society of Engineers, Mr Abdul Hakim Al Mutawa, Sakana's Vice Chairman, said such partnerships will further fuel the Kingdom's booming real estate sector.

Mr Al Mutawa explained that by forging partnerships across the property sector, Sakana is working towards the formation of a network that will provide property buyers greater access to the full range of professionals operating in the real estate market. Such a network will also assist potential house buyers, developers and property investors to find the best advice and solutions to fund property investment. In line with Sakana's vision of being a catalyst in the market, the service will highlight issues to be addressed by property sector professionals leading to further development of industry best practices.

Mr Al Mutawa said:

"Sakana's holistic approach to housing finance aims to foster links between the engineering community and other professionals across the property sector. Our goal is to assist as many people as possible to navigate their way through the property market."

Mr R Lakshmanan, Chief Executive Officer, Sakana said that the Bahraini economy has entered a growth phase with a strong upsurge in mortgage financing. The overall size of Bahrain's housing finance market is currently valued at an estimated level of BD 500 million (US$ 1,326 million) with further growth in the sector predicted.

Projects currently under construction in the Kingdom are estimated at approximately BD 3.5 billion (US$ 9.2 billion), while bank lending to the construction and real estate sector is continuing to increase. According to latest figures from the Central Bank of Bahrain, lending to construction and the real estate sector as at end 2006 reached BD 484 million (US$1,284 million) - up by 60% from 2005. The value of traded land permits increased to BD 619 million (US$ 1,642 million) by September 2006 with a parallel increase in the issue of construction permits.

Mr Abdul Majeed Al-Gassab, Vice President of the Bahrain Society of Engineers, said: "With the growing demand for housing and the many real estate projects underway or in the planning stage, our members are dealing with an increasing volume of customers. We welcome new ways to improve the information, help and advice we can provide our clients about the choices of finance available for their plans."

Mr Al Mutawa confirmed: "In the face of the booming real estate sector, the role of Bahrain's engineering professionals is key in providing advice at the planning, design and construction stage to the customers. Sakana welcomes partnerships with engineering companies to assist in developing the best housing solutions at the most affordable prices.

"The emergence of dedicated mortgage institutions like Sakana that are offering Islamic mortgages is reshaping the housing market by offering easier finance for property buyers on a wide range of residential developments to an increasingly wider range of income groups for both residents and non-residents," he concluded.