Bahraini banks have made the decision to abandon the previous procedure of increasing the interest rate on all private real estate financing for beneficiaries of housing programs and solutions, Invest-Gate reports.

Clients who have real estate loans have confirmed receiving text messages informing them that the interest rate hike will be halted. This move encourages the continued growth of the real estate sector and contributes to increased government revenues. The decision is considered correct and significant in alleviating the hardships faced by low-income citizens.

Abdulaziz Al-Aali, the President of the Bahrain Real Estate Association, stated that this decision will help stimulate demand for real estate. He emphasized that purchasing real estate will become more accessible with the decrease in borrowing costs.

Furthermore, he explained that the decision will revitalize the real estate and construction sectors, which will have a positive impact on the national economy as a whole, allowing the pace of economic growth to continue.

Al-Aali also highlighted that the step taken by the Bahraini Ministry of Housing and Urban Planning will generate new job opportunities in various sectors, such as construction, design, finance, and insurance. Additionally, it will lead to increased government revenues through taxes and fees on real estate.

In January of this year, the Central Bank of Bahrain (CBB) reached an agreement with the relevant banks to cancel their plans to raise the interest rate on certain private real estate loans for beneficiaries of housing programs and solutions. Instead, the banks will maintain the same interest rate as previously agreed upon with the borrowers.