The Contribution of Real estate loans in the Bahraini market
Investment is very important for countries, and is mainly linked to the economy, because it contributes to increase production, economic consolidation, job creation and improved living standards. As for the investor, it means increasing income and obtaining an increase in profits.
There are many different fields of investment in countries, such as: agriculture, industry, tourism and real estate.
One of the most active investment fields in the global markets is the real estate sector, as real estate investment offers many advantages, services and mutual benefits for both the country and the investor.
According to a report issued lately by Weetas website. The real estate market has become one of the most stable investment markets in Bahrain, where real estate has maintained its success rate and stability despite of the market volatility, attracting many local and foreign investors alike to open new doors in this field.
According to the success of the Bahraini real estate market, Bahrain has contributed in providing all the facilitates to the process of investment in the real estate market. Loans and real estate financing were the most important features offered by the Kingdom.
These state-sponsored financing initiatives were not for investors only, as some citizens face difficulties in purchasing real estate and owning them, because of their high prices. So these loans came as a way to help citizens buy or help anyone interested in the real estate market and investing in it, whether it is land or housing units or commercial. These loans have contributed in encouraging housing demand and increasing investment in the market.
The real estate loans are defined as the process of financing investors whether for persons or companies to invest in the acquisition of residential, administrative, service and commercial properties. By guaranteeing the right to the property or mortgage to formal or other guarantees accepted by the financier in accordance to the rules and legal procedures organized.
Real estate loans are not limited to the purchase of property for housing, but it is also suitable for the construction, renovation or improvement of property, whether for housing, administrative, commercial or service purposes.
As the Bahraini property market has become a prosperous and profitable market, it has become necessary to talk about mortgage finance solutions offered by Bahraini banks to facilitate the real estate investment process.
Real estate loans are one of the many solutions and initiatives offered by banks in the Kingdom of Bahrain.
The Bank provides credit products tailored to the needs of individuals from real estate finance, to own a home or property in Bahrain whether it is a house, apartment, real estate, land, building finance or restoration, including finished or under construction buildings or homes, where banks in the mortgage finance sector have provided medium and long-term financing for property acquisition. The mortgage interest rate in the Kingdom of Bahrain is about 6% annually.
Whether the investor is a Bahraini citizen or a resident of the Kingdom, the banks provide loans and various financing that may be needed by anyone interested in investing in the real estate market.