Capital gains

IN the past three years the property market in Bahrain has witnessed a frenzy of development and investor activity.

The island's nascent real estate market has reaped the rewards for those who saw the kingdom as an ideal investment opportunity and took the plunge to buy when developments were simply plans on a drawing board or a computer whiz-kid's artistic impression.

As the kingdom welcomed expatriate buyers in selected areas for the first time some rushed to buy a piece of Bahrain while others remained sceptical about the return on their property value. But the price hike in freehold properties on the island has surpassed most industry experts' expectations and the boom continues unfettered.

Khalid Anib, general manager of Novotel Al Dana Resort, bought his first apartment at Amwaj Island two years ago. "When I bought my apartment I looked at all the major indicators in Bahrain which were very positive: great and secure place to live, geographical location of Bahrain which brings with it future opportunities, ongoing infrastructure development, thriving economy and progressive vision of the government.

"Rent payout is dead money and for me Amwaj was a perfect place to invest and raise my family."

Mr Anib's implicit confidence in the dynamic Arabian archipelago has reaped enormous financial rewards as he sold the same apartment last month for a profit of 70 per cent.

He has reinvested and upgraded his investment in Amwaj and will move into a new and bigger apartment in two months time.

Being in the service industry, Mr Anib has witnessed a boom in the hospitality sector which is growing at a rate that at times visitors to the island cannot find a quality four or five star room to stay in.

"And with the Qatar-Bahrain causeway set to complete in 2010, we are anticipating an increasing amount of activity in terms of tourism and business. And with escalating economic activity comes investor interest. At the moment prices in Bahrain are low compared to the rest of the region and the fact that it is tax free makes it more lucrative."

The 43-year-old who has been on the island for almost three years with his Moroccan wife, Fadela and two-year-old daughter, Meryem, is the driving force behind the popular and exotic Al Yacout Moroccan restaurant.

Mr Anib, a Finnish-Moroccan, was the first person in Bahrain to officially receive title deeds of an apartment by Survey and Land Registration Bureau director general Shaikh Abdulrahman bin Ali Al Khalifa.

Originally, title deeds were awarded to land or house owners but never to apartment owners on the island. This gives Mr Anib the opportunity of self-sponsorship even when he moves away from Bahrain.

"Given the present environment of new projects and continued market activity, I, as an investor, anticipate that prices will continue to grow at a healthy rate. Also, owning my own home is a great feeling," said Mr Anib but adds that the mortgage rates are quite high in the kingdom which could be a deterrent for prospective investors and need to be looked into.

As the Anib family moves into their second home, buying into the Bahrain dream is affording them the happiness that every family yearns for. And as home owners are increasingly reaping impressive gains on their investments it is providing an impetus for investors to buy a piece of the island for themselves.