One of the most common dilemmas when buying a house is whether to invest in a ready-to-move-in home or opt for a completely new project in Bahrain which is under construction. Each has its advantages and disadvantages, while the article discusses the pros and cons of owning a new construction project.
For a buyer or an investor, the cost of the property is one of the most important things. A new real estate project which is under construction is more likely to cost less than a ready-to-move-in property. The wait may be longer but considering the cost, it is worth the wait. Also, with RERA in place, developers must deliver on time and if they don’t, they are liable to pay compensation to buyers.
However, a buyer shouldn’t blindly invest in any upcoming projects in Bahrain based on factors likee affordability and RERA rather need to do due diligence in terms of the reliability of the developer and choose a project from a good developer. For example, Kooheji Development is at the forefront as a reliable developer in Bahrain, by developing the Fontana projects.
As the buyer is investing in the project at a lower cost the project appreciation is expected to be higher. As the construction progresses, the price of the property also increases. For high returns on investment, buyers should check the location, upcoming infrastructure, amenities, developer credibility etc.
Check the insights shared by Engr. Mohamed Al Kooheji, CEO of Royal Ambassador on how real estate in Bahrain is undervalued and has huge growth potential.
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Buying a new building project in Bahrain has its advantages in terms of payment flexibility. While buying a ready-to-move-in apartment or property, the buyer has to pay the entire amount at one time, the same is not the case with a construction project. It’s usually 10 or 15 percent as the booking amount, and the remaining would be paid in installments, based on the construction progress milestones.
One of the biggest worries for a buyer or an investor is the progress of the project and if the project would be delivered on time or not. A under construction project may be delayed for various reasons, sometimes it may because of the logistics, while sometimes the developer misses the set project progress timelines. This becomes a tricky situation if the delay is more than a year of the project time. However, this can be avoided by investing in a project developed by a reliable developer.
Investing in an under-construction project would be completely based on the project renders shared by the developer. However, once the project is completed, it might not reach one’s expectations.
Best Property Management firm in Bahrain
Royal Ambassador is the leading property management and hospitality company in the Kingdom of Bahrain, handling various properties like Fontana Towers, Fontana Gardens, Fontana Suites, Fontana Infinity, Ariva, Springfield Seef and many more.
If you are looking for a well-managed apartment in Bahrain, you can properties for rent listings on our website https://www.royalambassadorbh.com/ or can get in touch with us at +973 1700 0661