Access to housing is a growing problem, as well as an important determinant of quality of life and human welfare. As urbanization rates increase, a major challenge across scales of government is to provide safe, affordable housing to growing populations. In Bahrain, efforts to increase access to housing have included mixing traditional state programs with public-private partnerships (PPPs). In 2013, the government developed a finance scheme that offered the private sector subsidized mortgages and incentives for development. Those in the private sector see PPPs as a viable way to increase confidence in the investment climate, allowing the public and private sector to work together to provide affordable housing with greater efficiency.
However, Bahrain faces major concerns in land constraints in the long term – so even as residential construction in the affordable sector will serve as a major growth catalyst for the construction sector in the medium term, ongoing innovation in the housing market will be necessary to ensure long-term access to affordable housing.
Source:
Oxford Business Group. (2020) Emerging Markets Strive to Solve Housing Deficits amid Rising Urbanisation.