MANAMA: The estimated market requirement of about two million homes in Saudi Arabia and 45,000 housing units in Bahrain provides sufficient economies of scale to the private sector to enter the market, an industry expert said recently.
“The current size of the affordable housing market in Bahrain is estimated at $4 billion with an additional annual increase of about $900 million,” said Mohammed Khalil Alsayed, Ithmaar Development Company Chief Executive and member of the board. “The market for affordable housing in Bahrain is so large that multiple players can contribute to nation-building exercises as well as achieve their separate stakeholder objectives.”
He stressed the importance of meeting demand for affordable housing and called for increased public-private partnerships to help address the pressing socioeconomic issue.
“The annual demand, together with government commitments to clearing waiting lists for homes, has created a large one-time potential which, along with market-friendly time horizons, will significantly interest private sector developers,” he said.
Alsayed was speaking at a panel discussion on the prospects for affordable housing.
