MPs sound alarm, demand action, as 25% rise in material costs delays housing projects

Daily Tribune

14-05-2025

Twenty-five per cent price jumps in key construction materials have triggered fresh warnings from MPs and property developers, who say shortages are already stalling housing projects and pushing affordable homes further out of reach.
They have called for a 10-year plan focused on steady supply lines, more factory output at home, better offloading infrastructure, and short-term relief for builders struggling to keep costs in check.
Among their main concerns are schemes such as 'Mazaya' and 'Land and Loan', which rely on reliable supplies and stable pricing to remain within reach of ordinary buyers.
Growing pressure
MP Hassan Ibrahim Hassan pointed to growing pressure across government-backed developments, which depend on a constant flow of steel, cement and other materials.
A break in the chain, he said, sets off delays across the board.
He noted that while several Bahraini companies own the barges used to bring in materials, many were leased abroad on high-paying deals, leaving fewer resources at home.
Basic inputs
As a result, private firms working on ministry projects are now struggling to source basic inputs.
He warned that the cost of public tenders has already climbed due to these shortfalls.
With Bahrain needing up to 11 million tonnes of imported material each year, the latest shipments will not last long, perhaps a month.
Domestic projects
Meanwhile, suppliers in neighbouring countries are stretched by large domestic projects of their own and have little left to send.
To keep home prices stable, Hassan said, attention should turn to helping low-income families who rely on subsidised housing schemes.
He suggested building more berths to speed up deliveries and ease delays.
MP Jalila Al Sayed said higher prices were making it harder for families to benefit from statebacked loans.
With the cost of raw materials rising, so too are house prices.
Good terms
That, she said, risks putting units beyond reach and may cause developers to hesitate before offering homes on good terms.
Shortages have already held up work across housing and infrastructure, especially where deliveries of concrete and iron have slowed.
She said this could also weigh on hiring in the building trade.
She called for Bahrain to cast a wider net when importing materials, avoiding too much reliance on one or two countries.
Homegrown production
More homegrown production of cement and blocks would help too.
To keep the market steady, she proposed tax breaks and perks for firms willing to hold their prices, more warehouse space for storage, and tighter checks on resale prices.
Builders who avoid passing costs on to buyers, she added, should be offered better financing terms.
Jasim Mohammed Kadhem, head of Dar Al Sultan Real Estate, said price rises were affecting everyone involved, from developers to end users.
He explained that building costs are not worked out by volume but per house, based on how much sand, concrete and steel each one needs.
Sign
Prices have shot up in recent months and there is no sign of them coming down.
Kadhem pointed to concrete as one of the most affected materials.
Where it used to cost BD25 to BD27 per square metre, it now goes for around BD34, a jump of roughly a quarter.
He said this made it harder to plan budgets, especially when suppliers varied so widely in pricing.
A load of sand now runs to about BD85. Steel is close to BD239 per tonne, although that shifts with global rates.
A single 8-inch block costs 264 fils. Cement bags sell for BD1.6, while tying wire comes in at around BD2.5.
Contractors and shopkeepers say materials are in stock for now, and the shortages seen earlier this year were linked to rising demand in nearby countries.