The Kingdom of Bahrain has enacted a new regulation that works to reduce the failure of real estate projects, especially off-plan sales projects, and the new regulation, which will be applied from March 1, 2018, will preserve the rights of everyone in the Bahraini real estate market, following the announcement of the launch of the Real Estate Regulatory Agency.

The Kingdom of Bahrain has announced the maintenance of real estate fees and their non-increase, in order to maintain the stability of the real estate market to prevent any confusion that the market may experience during the coming period.

Bahrain will impose real estate fees on all property owners in the Kingdom of Bahrain. Bahrain will require companies marketing off-plan projects to provide a minimum financial guarantee of 20% of the value of the property to be offered, whether it is liquidity or through a bank guarantee or a financial instrument, and will ban all unlicensed real estate brokers and appraisers starting next August, after giving them 6 months to legalize their professional status.

Bahrain will also ban all unlicensed real estate brokers and appraisers from working from the beginning of next August, after giving them 6 months to legalize their professional status.

The Real Estate Regulatory Agency (RERA) will start its work from March 1, where it will grant licenses to practice real estate professions such as development, valuation, brokerage and off-plan sales after it has established regulatory and legal rules and requirements that regulate the work of all parties.

Sheikh Mohammed explained. <Sheikh Mohammed bin Khalifa Al Khalifa, CEO of the Real Estate Regulatory Agency (RERA), explained that the new regulation will reduce the failure of projects that previously plagued Bahrain, and will constitute a real guarantee for Gulf and foreign investors, and increase the attractiveness of the Bahraini real estate sector for investments significantly. Sheikh Mohammed Al Khalifa said that the new regulation of the Bahraini real estate sector will create a safe environment for off-plan sales projects, some of whose projects faltered in the previous period and negatively affected the Bahraini real estate sector, stressing that the Kingdom of Bahrain has entered a new phase in which the rights of all will be guaranteed through a strict and clear regulatory and legal environment for all and will not be allowed to lose rights through faltering projects.

Sheikh Mohammed Al Khalifa said that the new regulation will limit the loss of rights through the faltering of projects.