Market grapevine

● Bahraini investors are snapping up large plots of land in the heart of the English countryside, in the hope of high returns, says an expert specialising in the UK market.

Kuwait-based United Brokers Enterprise Real Estate has reported strong interest at its stand at Property Arabia 2007.
General manager Hassan Mahussain said that his firm had sold 10 plots of land in Buckinghamshire,  near Prestwood to Bahrainis, on the event’s opening day.
The lack of planning permission at present means the land is going for as little as BD3,700 for a 300sqm plot. “It is cheap because it doesn’t have the planning permission, but once you get the planning permission it booms like 20-fold,” said Mr Mahussain. “We have sold 800 plots in one year, all in Buckinghamshire.”

● Increasing number of buyers in Bahrain’s real estate market are purchasing properties to lease as an investment rather than to actually live in.
Bahrain’s buy-to-let market is rapidly increasing in size as people realise spiralling property values mean real estate promises a better return than many investments, according Orchid Developers and Contractors’ Champa Singh.
“So many of our clients, a high percentage, are getting new properties for rental,” she said. “That kind of investment in our projects gives a very good profit. In one of our buildings almost all the people have bought to offer for renting.”
Orchid currently has eight tower developments split between Juffair and Seef, including both residential and commercial projects, and Ms Singh said both firms and individual buyers had awoken to the benefits of buy-to-let.

● Bahrain’s property boom is fuelling spending in luxurious additions to homes such as swimming pools and modern kitchens, exhibitors at Property Arabia 2007 said.
The exhibition also featured displays from firms hoping that -– having spent top dollar on their dream home – Bahrainis will find the extra cash to fit out the interior and surrounds with equally lavish accessories.
Visiting Malaysian firm DK Composites exhibited swimming pools, yachts and custom-built domes for large hotel developments and mosques at the event. Company director Habibur Ibrahim said the firm was examining the possibility of moving some of its operations to Bahrain. “It is a good market for us and we are looking for a relationship with a local Bahraini firm who is willing to promote the products we are manufacturing – and we will not hesitate to also manufacture them in this part of the world if there is sufficient volume,” he said. “We are looking for a Bahraini partner to promote the products and if the market is big enough and the volume justifies local manufacture, we would certainly set up here.”