Real estate, amongst key market sectors, can be described as the backbone to an economy, whereby it comprises of the infrastructure where all other sectors can operate. Therefore, in the design of a national vision, real estate becomes the base for progress and economic development. This research paper investigates the contribution of the real estate market towards meeting the three main principles of the 2030 economic vision set by the Kingdom of Bahrain.
To start, an overview of Bahrain’s current market conditions is provided, as per collected secondary data, with a particular focus on real estate activities. Following the market overview is a detailed study of the concepts of sustainability, fairness, and competitiveness, as they form the base principles of the Bahrain economic vision. The study included the pertaining theories for each concept, followed by an application of how they would manifest in the real estate context. Finally, a comparison is devised between the actualisation of such principles in mature markets versus Bahrain, with a highlight of gaps and overlapping practices, where applicable.
To follow, primary data gathered through interviews with prominent real estate practitioners in Bahrain, shows the perceptions on real estate trends and the implementation of the vision principles, confirming a notable gap between current and potential market conditions. Reasons for these gaps have been explored within the interviews and as based on literature reviews, addressing both the limitations and opportunities for the prosperity of the real estate sector.
Finally, the concluding chapter suggests real estate practices which could bridge such gaps, towards achieving market fairness, sustainability, and competitiveness. The objective here is to further enable the role of the real estate sector as a major contributor to national wealth and meeting the ambitions of the 2030 Economic Vision, which aim to diversify the economy away from oil dependency, enhancing productivity, and improving living standards.
Table of Contents
CHAPTER 1: INTRODUCTION
1.1 BACKGROUND
1.2 BAHRAIN’S 2030 ECONOMIC VISION
1.3 ROLE OF REAL ESTATE IN MEETING THE VISION
1.4 RESEARCH SHAPE, SCOPE & STRUCTURE
1.4.1 Parameters of the Report
1.4.2 Aims
1.4.3 Objectives
1.4.4 Research Questions
1.4.5 Division of Report, following this chapter
CHAPTER 2: LITERATURE REVIEW
2.1 AN OVERVIEW ON THE REAL ESTATE MARKET IN BAHRAIN
2.1.1 Contributing & Limiting Factors, and the Role of Government
2.1.2 The Real Estate Market: An Overview of the Sectors
2.2 REVIEW ON PRINCIPLE ONE: SUSTAINABILITY
2.2.1 Definition of Sustainability
2.2.2 Theories of Sustainability
2.2.3 Sustainability in the Real Estate Context
2.2.4 Considerations of Sustainability Factors in Mature Real Estate Markets vs. Bahrain.
2.3 REVIEW ON PRINCIPLE TWO: FAIRNESS
2.3.1 Definition of Fairness
2.3.2 Theories of Fairness
2.3.3 Fairness in the Real Estate Context
2.3.4 Fairness in Mature Markets vs. the Bahraini Market
2.4 OVERVIEW ON PRINCIPLE THREE: COMPETITIVENESS
2.4.1 Definition of Competitiveness
2.4.2 Theories of Competitiveness
2.4.3 The Advantages of Having a Competitive Market
2.4.4 Factors Affecting Real Estate Competitive Attractiveness for FDI
2.4.5 Competitiveness in the Real Estate Context
2.4.6. Competition in Mature Real Estate Markets vs. Bahrain
CHAPTER 3: METHODOLOGY
3.1 INTRODUCTION TO RESEARCH DESIGN
3.2 RESEARCH PHILOSOPHY
3.3 RESEARCH STRATEGY
3.4 ADVANTAGES AND DISADVANTAGES OF CHOSEN RESEARCH METHOD
3.4.1. Advantages
3.4.2. Disadvantages
3.6 THE INTERVIEW PROCESS
3.6.1 Format of Interviews
3.6.2. Interview Sampling Strategy
3.7 RATIONALE FOR INTERVIEW PARTICIPANTS
3.7.1 Conducted Interviews
CHAPTER 4: FINDINGS & DISCUSSION
4.1 INTRODUCTION
4.2 GENERAL INTERPRATATIONS ON THE REAL ESTATE MARKET IN BAHRAIN
4.3 UNDERSTANDING/ADAPTING THE VISION
4.3.1 General Awareness
4.3.2 The Suitability, Importance & Contribution of the Vision
4.3.3 A Common Interpretation: The Need for a Plan
4.4 ADAPTING TO PRINCIPLES WITHIN THE VISION
4.4.1 Rating the Principles
4.4.2 Perceptions on Sustainability in the Bahraini Real Estate Context
4.4.3 Perceptions of Fairness in the Bahraini Real Estate Context
4.4.4 Perceptions of Competitiveness in the Bahraini Real Estate Context
4.4.5 General Sense/Ideology
CHAPTER 5: CONCLUSION
5.1 RECOMMENDATIONS
Research Objectives and Core Themes
The research investigates the contribution of the real estate market in Bahrain toward achieving the three main principles of the 2030 Economic Vision—sustainability, fairness, and competitiveness—and identifies current market gaps and opportunities for improvement.
- Analysis of the Bahraini real estate market's contribution to national development.
- Evaluation of international sustainability, fairness, and competitiveness standards in real estate.
- Identification of the gap between current market practices and the aspirations of the 2030 Economic Vision.
- Recommendations for regulatory and structural reforms to enhance the real estate sector.
Excerpt from the Book
2.4 OVERVIEW ON PRINCIPLE THREE: COMPETITIVENESS
The term “competition” was defined by Stigler (1991) as a “rivalry between individuals rising whenever two or more parties strive for something that all cannot obtain.” This notion is not just evident in modern society where individuals compete in athletics, job positions, political votes and others, but as based on Charles Darwin’s Natural Selection Theory (1859), it has existed as long as life has. He found that competition was a driving force for change as per natural selection and survival of the fittest. However, even after years of research, the concept itself remains ‘complex, multidimensional and relative’, where scholars cannot decide on a unanimous definition, each having different opinions and observations regarding the topic.
Scott and Lodge (1985) have suggested in literature that competition encompasses four dimensions, including: competitors, competing objects, competitive edge and competed results. Based on those dimensions, competitors work to augment their competitive capability by concentrating on definite capabilities to realise their competitive object. This definition is easily applicable into the real estate industry, where for instance competitors would not only include developers or freeholders, but also providers of raw materials and complimentary products and services; competing objects include the full range from raw material to finished and fully furnished product; competitive capabilities include the competitive advantages which rely both on internal strength and strategy; all of which lead to competed results affecting general market/economic conditions.
IMD (2004) summarised 14 distinctive definitions of competitiveness, amongst these, the widely accepted World Economic Forum’s definition describes competitiveness as the set of institutions, policies and factors that determine the level of productivity, profitability, growth and stability as crucial principles for measuring the success of a country, industry or a firm (Mahralian & Shabaninejad, 2014). Thus, different competitiveness definitions apply within those levels.
Summary of Chapters
CHAPTER 1: INTRODUCTION: This chapter outlines the national context of Bahrain, the 2030 Economic Vision, and the role of the real estate sector as a fundamental component of the national economy.
CHAPTER 2: LITERATURE REVIEW: This chapter reviews theoretical frameworks regarding sustainability, fairness, and competitiveness in real estate, comparing Bahrain's market with mature international markets.
CHAPTER 3: METHODOLOGY: This chapter details the research design and qualitative methods used, specifically focusing on semi-structured interviews with market practitioners.
CHAPTER 4: FINDINGS & DISCUSSION: This chapter presents and analyzes the interview data regarding perceptions of market conditions and the implementation of vision principles in Bahrain.
CHAPTER 5: CONCLUSION: This chapter synthesizes findings and provides strategic recommendations for establishing a more competitive, sustainable, and fair real estate market in Bahrain.
Keywords
Bahrain, 2030 Economic Vision, Real Estate Market, Sustainability, Fairness, Competitiveness, Economic Growth, Property Development, FDI, Urban Planning, Regulatory Framework, Market Transparency, Valuation, Affordable Housing, Strategic Management.
Frequently Asked Questions
What is the core focus of this research paper?
The research examines the role of the Bahraini real estate market in contributing to the three pillars of the Kingdom's 2030 Economic Vision: sustainability, fairness, and competitiveness.
What are the primary thematic areas covered?
The work focuses on market dynamics, the application of sustainability principles, the need for transparent regulatory frameworks, and strategies for achieving long-term economic competitiveness.
What is the central research question?
The research seeks to understand how real estate practices in Bahrain can align with national vision goals, identify existing gaps in the market, and propose effective approaches to bridge those gaps.
What methodology was employed for this study?
The study utilizes qualitative research, primarily through semi-structured interviews with 16 prominent real estate practitioners in Bahrain, supported by an extensive literature review.
What does the main body of the research address?
The main body examines the current state of Bahrain’s real estate market, defines the three pillars of the national vision, and compares domestic practices against international standards in mature markets.
What are the key descriptive terms for this work?
Key terms include Bahrain, 2030 Economic Vision, Real Estate, Sustainability, Fairness, and Competitiveness.
How does the author define the role of real estate in the 2030 Vision?
The author views real estate as the "backbone of an economy," providing the necessary infrastructure for all other sectors to operate and therefore serving as the base for national progress.
Why is the lack of a formal "national plan" considered problematic?
The research highlights that without a concrete, documented roadmap, there is a lack of clarity among market players and government officials on how to align sectoral activities with the overarching national economic goals.
- Quote paper
- Abdulla Al Raees (Author), 2015, Sustainability, Fairness and Competitiveness. The Real Estate Market and the 2030 Economic Vision of Bahrain, Munich, GRIN Verlag, https://www.grin.com/document/343202
