PHOTO
Bahrain - Shura Council members have rejected parliamentary efforts to ban expats from owning property in certain areas in Bahrain.
The unanimous vote to reject the bill banning foreigners from owning homes in areas not considered tourism or investment zones was taken during the Shura Council’s weekly session yesterday.
MPs passed the amendments to the 2001 Non-Bahrainis Ownership of Property and Plots Law in April, despite objections from the government, following claims that Bahrainis were being priced out of the property market.
According to the law, foreigners are able to buy property and land anywhere in Bahrain.
However, in 2003 the government imposed restrictions that limit this right to certain locations – such as Hoora, Abu Ghazal in Manama, Al Fateh District in Juffair, the Diplomatic Area, Reef Island and Seef.
Expats can also buy properties at designated investment projects such as Amwaj Islands.
The amendments were originally proposed in October 2017 by the previous parliament who claimed foreigners were inflating property prices because of their higher spending power.
They voted to amend the law to restrict the right of expats to own property to only tourism and investment developments.
However, the government said at the time that expatriate ownership of property did not exceed seven per cent of the market and was mainly in apartments not homes.
GCC nationals and expat inheritors are considered Bahrainis under all laws.
During yesterday’s debate, human rights committee chairman Ahmed Al Haddad said the amendments could cause more harm than good.
“Expat ownership is just around 7pc of the total property sector, mostly are GCC nationals at 97pc,” he said.
“In existing legislation GCC nationals are considered as Bahrainis, so the actual percentage is much lower.
“For example, in Durrat Al Bahrain 97.6pc of the properties there are owned by Bahrainis and around 2pc by expats.
“It is clear the amendment will cause more damage than good, considering there is a huge drop in the sector due to political and financial difficulties in the region while there is a need to rejuvenate the market.”
He added that the figures he has showed that 95pc of apartments were also owned by Bahrainis.
“This clearly shows that the market is there to target Bahrainis and not expats,” he said.
“Existing restrictions by the government introduced 16 years ago have ensured that expats are not allowed an open sale.”
Services chairwoman Dr Jihad Al Fadhel said the country’s housing issue was a complex one that should be addressed differently.
“Banning expat home ownership is not the solution,” she said.
“Addressing the complex housing situation through easing procedures is what legislators should work on – whether that means more bank loans, including more people under the social housing scheme Mazaya or any other effective manner.”
Youth and sports committee vice-chairman Bassam Albinmohammed added that if the bill were to pass then it would cause further losses to the property and real estate sector.
“Expected government revenues last year from the property and real estate sector were BD36 million, but the actual figure was BD16m,” he said.
“This is around a 50pc drop and putting more restrictions will drag it further down.
“Expat ownership is of a limited number, so we shouldn’t further restrict it when we want to boost the sector.”
The bill has been referred back to Parliament for a second review.
mohammed@gdn.com.bh
© Copyright 2019 www.gdnonline.com
Copyright 2019 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).
