RERA, short for the Real Estate Regulatory Authority, was established in Bahrain to regulate and oversee the real estate sector. Since its inception, RERA has significantly improved the sector’s transparency and protects consumers’ rights. Here are some of RERA’s notable achievements:
- Implementation of the National Real Estate Plan: RERA recently announced the commencement of the National Real Estate Plan 2021-2024. This plan aims to bolster the real estate sector, improve consumer protection, and streamline real estate services in Bahrain.
- Overcoming obstacles in implementing Law No. 27 of 2017: RERA faced many challenges in implementing this law. However, the authority has successfully overcome these obstacles and prepared all necessary studies to enforce the ordinance. This has resulted in increased transparency in the industry, which has boosted investor confidence.
- Licensing of real estate service providers: RERA has also successfully licensed real estate service providers, including brokers, developers, and property managers. This has helped to regulate the sector and protect consumers from fraudulent activities. RERA has also implemented a complaint and dispute resolution mechanism, which has helped to resolve disputes between consumers and service providers.
Establishment and Structure of RERA
Legal Framework and Regulatory Environment
RERA, short for Real Estate Regulatory Authority, was established in 2017 under Law No. 27 2017. The law aims to create a regulatory environment that promotes transparency, accountability, and efficiency in Bahrain’s real estate sector. RERA operates under the Ministry of Justice, Islamic Affairs, and Endowments and is governed by a board of directors appointed by the Cabinet.
RERA’s mandate is to regulate and supervise the real estate sector in Bahrain, including developers, brokers, valuers, and property managers. The authority is responsible for enforcing laws, regulations, and procedures related to real estate activities and ensuring compliance with ethical standards and consumer protection.
Leadership and Governance
The Chairman of RERA is Sheikh Salman bin Abdullah bin Hamad Al Khalifa, also the President of the Survey and Land Registration Bureau. The CEO of RERA is Sheikh Mohammed bin Khalifa Al Khalifa, who has extensive experience in the Bahraini real estate sector.
The board of directors of RERA consists of seven members, including the Chairman and the CEO. The council sets the direction of the authority, monitors performance, and confirms that it is operating within the legal framework. The Cabinet appoints the board members for a renewable term of three years.
RERA has made significant progress in establishing a robust legal and regulatory framework for the real estate sector in Bahrain. Its leadership and governance structure are designed to ensure that the authority operates transparently, accountable, and efficiently.
RERA’s Impact on the Real Estate Sector
Licensing and Professional Standards
Since its creation in 2018, the Real Estate Regulatory Authority (RERA) has been instrumental in regulating and improving the real estate sector in Bahrain. One of its primary accomplishments has been the establishment of licensing and professional standards for real estate professionals, including brokers, property managers, valuers, and owners’ association managers.
RERA has set specific competencies and experience requirements for each profession, ensuring that licensed professionals are qualified and knowledgeable. It has also introduced Bahrain Valuation Standards to ensure accuracy and consistency in property valuation.
Some of RERA’s accomplishments in this area include:
- The issuance of licenses for more than 3,000 real estate professionals ensures that only qualified individuals are operating in the sector.
- Developing a code of ethics for real estate professionals to guarantee that they operate with transparency and integrity.
- The introduction of a system for reviewing and approving real estate advertisements, ensuring that they are accurate and transparent.
Market Transparency and Stakeholder Confidence
RERA has also improved market transparency and increased stakeholder confidence in the real estate sector.
RERA has introduced several measures to increase transparency, including:
- The establishment of a public register of licensed real estate professionals allows buyers and sellers to verify the credentials of their real estate agents.
- The introduction of a system for recording real estate transactions, ensuring that all transactions are accurately recorded and publicly available.
- Developers must provide detailed information about their projects, including plans, timelines, and costs, to ensure buyers can make informed decisions.
These measures have helped increase confidence in the real estate market in Bahrain, attracting more investment and improving the sector’s overall health.
Some of RERA’s accomplishments in this area include:
- Issuing more than 1,000 licenses for real estate developers ensures that only qualified individuals are developing projects in the sector.
- Introducing a system for regulating owners’ associations ensures they operate transparently and accountable.
- Establishing a regulatory environment that promotes transparency and accountability in the real estate sector ensures that buyers are protected and that the industry operates fairly and efficiently.
Strategic Initiatives and Collaborations
National Real Estate Sector Plan and Urban Development
Under the guidance of the Prime Minister, the Real Estate Regulatory Authority (RERA) in Bahrain has developed a comprehensive National Real Estate Sector Plan. This plan aims to diversify the economy, attract investment, and promote growth and development in the real estate industry.
RERA has initiated several strategic initiatives focused on service innovation, efficiency, and best practices to achieve these objectives. One such initiative is the development of an integrated ecosystem that attracts international companies specialized in real estate technology. Additionally, RERA has created an electronic platform that provides up-to-date and reliable information on the real estate market in Bahrain.
Partnerships and Sector Growth
RERA recognizes the importance of partnerships and collaborations in achieving its objectives. The authority is working closely with developers, investors, and the private sector to promote growth and development in the real estate market.
RERA is also committed to promoting professionalism and cooperation in the industry. To this end, the authority has developed regulatory frameworks, updated procedures, and services in line with real estate’s economic transformations and technological developments. RERA also provides innovative solutions to ensure a real estate sector that attracts investments and preserves stakeholder interests.
In spite of the current challenges in Bahrain’s real estate industry, RERA remains confident in its ability to promote growth and development in the sector. Through strategic initiatives and partnerships, RERA is committed to achieving its objectives and positioning Bahrain as a regional leader in the real estate industry.
- Developed a comprehensive National Real Estate Sector Plan
- Created an electronic platform for up-to-date and reliable information on the real estate market
- Working with government and industry stakeholders to develop a National Real Estate Policy
- Promoting urban planning and development
- Working closely with developers, investors, and the private sector to promote growth and development
- Developing regulatory frameworks and updated procedures and services
- Providing innovative solutions to ensure a real estate sector that attracts investments and preserves stakeholder interests.
Key Achievements and Future Outlook
Since its establishment, Bahrain’s Real Estate Regulatory Authority (RERA) has significantly promoted a safer and more transparent real estate sector. Here are some of RERA’s key achievements and future outlook:
- Effective Regulation: RERA has implemented a robust regulatory environment that has attracted international investment and promoted economic growth in the Kingdom of Bahrain. The National Real Estate Plan 2021-2024, approved by the Cabinet, will contribute to developing a safe, transparent, and sustainable real estate sector that encourages investment and innovative project development.
- Improved Services: RERA has introduced many e-services, such as online registration and renewal of licenses, which have simplified procedures and reduced processing time. RERA has also launched an escrow account system that protects buyers’ funds and ensures developers complete their projects on time.
- Stalled Project Resolution: RERA has successfully resolved many stalled projects, protecting investors’ rights and ensuring that developers complete their projects per the agreed-upon timelines. RERA has also established a reserve fund to compensate buyers in case of project delays or cancellations.
- Investment Promotion: RERA has actively promoted investment in the real estate sector, attracting renowned developers to Bahrain. This has led to the development of many innovative and sustainable real estate projects that have contributed to the sector’s growth.
Frequently Asked Questions
What are the significant achievements of RERA in improving real estate transparency in Bahrain?
- RERA has introduced regulations that require developers to disclose all relevant information about their projects, including the size, price, and completion date.
- RERA has established a public database of licensed real estate agents and developers, which allows homebuyers and investors to verify the credentials of their service providers.
- RERA has implemented a system for monitoring real estate transactions, which provides accurate and up-to-date information on market trends and prices.
How has RERA contributed to protecting real estate investors in Bahrain?
- RERA has introduced regulations that require developers to obtain a license before selling off-plan properties. This ensures that the developer has the necessary capabilities to complete the project.
- RERA has established a dispute resolution mechanism that allows investors to file complaints against developers who fail to deliver on their promises.
- RERA has implemented a system for escrow accounts, which ensures that investors’ funds are protected and cannot be used for purposes other than project development.
What measures has RERA implemented to enhance the quality of construction in Bahrain?
- RERA has introduced regulations that require developers to use high-quality materials and follow international construction standards.
- RERA has established a system for inspecting construction sites, ensuring developers comply with the regulations and maintain safety standards.
- RERA has implemented a system for certifying contractors and consultants. Which ensures that only qualified professionals are involved in the construction process.
Can you outline the dispute resolution mechanisms introduced by RERA in Bahrain?
- RERA has established a dispute resolution committee responsible for resolving disputes between developers, investors, and other stakeholders.
- The committee can issue binding decisions and impose penalties on developers who don’t align with the legalities and regulations.
- The committee comprises real estate law, construction, and finance experts. They ensure that decisions are based on sound legal and technical principles.
How does RERA ensure compliance with its regulations by real estate developers in Bahrain?
- RERA has established a system for monitoring and inspecting real estate projects. This ensures that developers comply with the regulations and maintain safety standards.
- RERA can impose penalties on developers who fail to comply with the regulations. Penalties include fines, suspension of licenses, and criminal prosecution.
- RERA works closely with government agencies, such as the Ministry of Works, Municipalities Affairs, and Urban Planning.
What steps did RERA take to educate homebuyers about their rights in Bahrain?
- RERA has established a website that provides comprehensive information on Bahrain’s real estate sector regulations.
- RERA has organized workshops and seminars for homebuyers and investors. These provide them with information on their rights and obligations under the law.
- RERA has established a hotline allowing homebuyers and investors to report violations.