The Kingdom of Bahrain has signed a US $551m PPP agreement with developer Naseej to build 4100 affordable houses by 2015. An estimated 3110 units will be social housing.
The announcement was made by Bahrain’s Housing Ministry last week; it’s the first affordable housing project in the Gulf kingdom and the largest of its kind in the ministry’s history with PPP funding.
The project, concentrating on the Northern City, Al Buhair Housing and Al Lawzi projects, is expected to tackle the chronic undersupply of affordable homes and reduce government waiting lists.
“We certainly want to use our own resources in mega developmental projects and encourage the private sector and local investors,” housing minister Basem Al Hamer said at the signing ceremony.
“We will observe the progress of this project for six months to see it becomes a successful model. We are open to all kinds of ideas as we are running against time and want to use all our resources,” he added.
The agreement was signed by Nassej board of directors chairman Khalid Abdulla Janahi, with finance minister Sheikh Ahmed bin Mohammed Al Khalifa.
Last year, Bahrain was named the most expensive construction market in the region by in the annual International Construction Cost Report released by built asset consultancy, EC Harris.
The tiny country was also in the top twenty most expensive markets worldwide.
On average it is 9% more expensive the the UAE, 6% more expensive than Qatar – it’s closest Middle East neighbour on the list – and on a par with the UK.