RERA opposes foreign ownership restriction proposal

A proposed law aimed at restricting foreign ownership of real estate in residential areas has been dismissed by Real Estate Regulation Authority (RERA). RERA has expressed its reservations about a parliamentary proposed law, which aims to restrict foreign ownership of real estate to tourist areas.

The authority, in a note to the Shura Council stated that such a law would adversely affect the real estate sector and the economy. It stated that the sector has already suffered a loss in revenue due to the economic conditions in recent years. “There has been a decline in real estate trading and existing economic conditions constitute one of the primary reasons,” a RERA official said.

RERA along with a number of governmental agencies are studying the current real estate market in Bahrain and hoping to find a solution to the problem. According to RERA, the real estate market needs a push to improve its state. In 2019 there has been a drop in revenue from 38 million Bahraini dinars to 22 million Bahraini dinars, which is a 42 per cent plummet.

According to the Chairman of the Committee on Finance and Economic Affairs at the Shura Council, Khalid Almaskati confirmed the drop in revenue, stating that it is not possible to make any concession to anyone regarding real estate registration fees. This comes after calls were made to exempt the registration fee on real estate registration for Bahrainis.

Mr Almaskati said the drop in revenue means that the government cannot afford further reduction in revenue from real estate registration. A parliamentary proposal for exempting Bahrainis from paying registration fees was sent to Shura council. However, the proposal was rejected.

Procedures for real estate registrations have sped up recently. It was recently announced that of ownership related to real estate transactions now only takes a day.

Chairman of the Board of Real Estate Regulation Authority (RERA) and President of the Survey and Land Registration Bureau (SLRB), Shaikh Salman bin Abdulla Al Khalifa, said that more mechanisms are being implemented to further reduce waiting time.