Manama, Aug. 1 (BNA): The Ministerial Committee for Development and Infrastructure Projects, chaired by Deputy Prime Minister Shaikh Khalid bin Abdullah Al Khalifa, has referred two stalled real estate development projects to the judicial Committee for the Settlement of Stalled Real Estate Development Projects.
Elegance City at Al Areen consists of 60 villas, most of which were sold by the developer in 2011. The project was scheduled to be completed within one year from the start of the works, but his inability to complete the works resulted in a breach of his obligations towards buyers and owners who have not received their units yet.
Once Central Building, located in the Hidd area, consists of 40 apartments and other flats under the freehold system. The developer of the project sold its units before the establishment of the Real Estate Regulatory Agency (RERA).
Acting on complaints by the buyers, RERA asked the developer to regularize the situation. However, he did not respond and did not commit to implementing the project and handing over its units to the buyers at the time agreed under the preliminary sales contracts. He also mortgaged the property on which the project is built with a local bank.
Shaikh Khalid stressed the committee’s commitment to following up on all stalled projects and to ensuring the rights of the buyers are upheld as part of the fight against exploitation and manipulation.
All development projects should be fully compliant with the provisions of the law to preserve the reputation and status of Bahrain that has long been known as a safe and secure haven for real estate investment in the region for decades, he said.
This positive reputation has been strengthened thanks to the serious steps taken to regulate the sector and its governance in accordance with international best practices in the field, Shaikh Khalid added.
The deputy premier renewed his call to owners and buyers in real estate development projects where developers did not adhere to the implementation program agreed upon under the sales contracts to communicate with the competent government agencies that will take necessary legal measures to protect the rights and interests of customers.
The Ministerial Committee for Development and Infrastructure Projects has since 2014 addressed 14 stalled projects and referred 11 of them to the judicial committee.