Delegates at a two-day conference on Islamic Housing and Real Estate Finance held recently in London, heard how Islamic finance is set for a major boost over the next few years largely because of real estate developments in key worldwide markets including Bahrain and the wider the GCC.
Putting Bahrain firmly on the world map of Islamic housing finance, Sakana Holistic Housing Solutions CEO addressed an audience of international Islamic finance and real estate experts on global and GCC-specific housing segmentation trends. Mr. Lakshmanan presented how the real estate market is undergoing constant change due to many diverse factors which are closely allied to economic, demographic and cultural influences.
He explored these and other aspects of the international and GCC property markets and discussed how Islamic finance can develop the latent demand by using mortgage products as well as value-added services.
Mr. R. Lakshmanan commented: “The GCC mirrors many of the changes we see in international property markets which are boosting the demand for Islamic housing finance. These include changes to property laws which allow more people to participate in the housing market; a greater variety of property including more affordable housing, and the increasing range and acceptability of Islamic mortgage products.”
Mr. Lakshmanan was also a panel speaker along with reputed Sharia’ scholars and debated on issues faced by the Islamic finance industry and the action required to address these.
Recent changes in the GCC real estate market – in particular the increase in availability of freehold property – are contributing to the steady growth in demand for Islamic mortgage finance.
He continued: “More and more people are turning to Islamic finance as an option which offers flexibility and peace of mind. It has an important role to play in meeting the different needs of customers in the various housing market segments — for example buy-to-let, key worker accommodation, luxury, timeshare and equity release where home owners can release funds for home improvements as well as a variety of other purposes.”
Sakana was the only Bahraini mortgage/real estate financial institution represented at the conference attended by delegates from across the globe. Speakers over the two-day event addressed key topics in both Islamic housing finance and real estate finance covering realty regulations, tax treatment, market demand, dynamics, product diversification, affordable social housing, risk management and sustainable engineering..
