The Ministry of Housing of the Government of Bahrain (MoH) signed an agreement with property developer Diyar to construct up to 3,100 social homes in the country.
The scheme will be acquired on a phased basis and as a new form of the PPP model that has been used for other low-cost housing projects in Bahrain.
The main object of this project is to solute the shortage of low-cost homes in Bahrain. The project is the single largest contract in size which values the expansion of government housing and affordable private housing units. All for this reasons it is considered to be the most important project for the time being.
According to Charles Russell Speechlys law firm, which counseled on the deal, there are around 50,000 people on social housing waiting lists in Bahrain alone and plea is increasing with population growth.
The development is also the first of its kind to include provisions relating to Bahrain’s new Social Housing Finance initiative, which aims to provide financial support to Bahraini citizens to acquire housing units through a subsidised programme in partnership with financial institutions across the country.
Minister of housing Basim Al Hamer said: "This is a very important agreement as it is the largest agreement of its type for co-operation between the private and public sectors and will have far reaching positive consequences for all citizens in the kingdom”.