Real estate laws get a twist
New fees have been introduced recently for real estate development projects in the Kingdom.
This was stipulated in the latest decision of Works, Municipalities Affairs and Urban Planning Ministry, setting a margin of BD5,000 to BD50,000 for services related to real estate projects in Bahrain, in accordance to their estimated values.
Minister Essam Khalaf announced in a press statement issued yesterday, “The new regulations come to standardise the real estate development field, curb the issue of stalled real estate projects and protect the rights of investors, buyers, developers and financiers alike.”
“The new fees include services like issuance of registration certificates and permits and amendments. The projects are divided on five categories according to their estimated values and fees shouldn’t exceed the ceiling of BD50,000, depending on the value of the project,” the statement read.
The introduced fees are BD5000 for projects with an estimated value of less than BD1 million, BD10,000 for projects valued between BD1m and BD3m, BD20,000 for projects valued between BD3m and BD7m, BD30,000 for projects valued between BD7m and BD10m and finally BD50,000 for real estate projects with an estimated value of more than BD10m.
At the same time, the decision, which was published on the official gazette on November 12, also specified fees in return of services provided by the Survey and Land Registration Bureau (SLRB).
They include BD500 for marking the real estate developmental project in the real estate records, BD1000 for marking it on the land record with the purchase agreement between the developer and the buyer, BD100 for mapping projects and issuance of registration certificates, BD100 for certificates of selling real estate units on the map and issuance of registration certificates and BD100 for certificates of legal actions, rights or selling contracts of real estate units.
MP calls it sugar-coated
On the other side, MP Adel Binhameed criticised the newly introduced fees, describing them as “sugar-coated taxes”.
He said in a statement yesterday that “the amount of the fees are exaggerated and will negatively impact the real estate market in the country.” “Setting fees of BD5,000 – BD50,000 to issue any permits related to real estate projects doesn’t really serve the Government’s endeavours to stimulate the economy and avoid the negative impacts of international crude oil prices plunge,” he commented.
Binhameed said, “There’s a wave of frustration among all the parties working in the real estate field, including developers and real estate development companies. The ministry didn’t consult them in regards to hiking services’ fees.” “Bahrain needs to attract foreign investors and encourage the local ones to pump more developmental, industrial, commercial and real estate projects into the country. Issuing such decisions puts obstacles that would limit such projects,” he added.
Photo Caption:The Marina West project in Budaiya, one of the main stalled real estate projects in the country
Related Posts