'Support for foreigners a ‘lifeline’ for Bahrain house rental sector'

TDT | Manama                                                     

The Daily Tribune – www.newsofbahrain.com

A Bahrain real estate firm owner emphasised the importance of the agreement made by Parliament and Shura Council members about housing allowances and assistance with energy and water bills for expats.

Sayed Sharaf Sayed Jaffar, who owns Sayed Sahraf Sayed Jaffar Real Estate Company, believes that these agreements can serve as a lifeline for the rental sector, which has been experiencing a slump, calling for the swift adoption and implementation of these agreements to revitalise the vital sector.

His remarks were made on the recent parliamentary agreements reached regarding redirecting subsidies and the expected amendments to them. Among the proposed measures are reducing the waiting period for housing allowances to three years from the date of marriage and increasing the allowance to BD200 instead of the current BD100.

Additionally, housing allowances would be provided to widows and those with specific demands. The MPs also proposed reducing the housing account tariff for foreigners by more than 35%, ranging from 13 fils for the lowest consumption category up to 3,000 units.

Regarding the reduction of water bills, the MPs suggested significant changes to the housing accounts for foreigners, lowering the value of the consumption unit from 750 fils (as currently applied) to 50 fils for the first category.

Significant increase

The real estate expert, who has been working in the rental market for four decades, emphasised that the significant increase in electricity and water bills imposed a few years ago contributed to the decline in rental activity, especially among foreigners. This, in turn, resulted in an oversupply of unoccupied apartments.

Sayed Sharaf further noted that prior to the hike in electricity and water prices, buildings were filled with tenants, especially in vibrant areas. However, this reality has changed to the extent that the occupancy levels in his buildings are now below 50%.

He pointed out that furnished one-bedroom apartments, for example, are now being offered for as low as BD220. He stated that implementing these proposals would increase occupancy levels and help attract many investors and foreigners who would find that housing costs have significantly decreased. He also called for listening to the voices of real estate owners in the vital sector, which contributes significantly to the gross domestic product.

Excessively high

In the same context, he criticised the electricity fees, which currently stand at 10%, stating that this percentage is excessively high and does not correspond to the services provided by the Ministry of Municipalities and Agriculture. He mentioned that their noticeable services are limited to garbage disposal and street cleaning.

He asked, “Imagine how much a building owner with 800 apartments pays in municipal fees?” He underlined the importance of reviewing this percentage, especially considering the significant decrease in apartment returns due to the scarcity of tenants.