Direct Economic Impact Of Housing Economics Essay

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Bahrain is an island country in the Persian Gulf. Although Bahrain became an independent country in 1971, the history of these islands starts from ancient times. Bahrain's strategic location in the Persian Gulf has brought rule and influence from the Sumerians, Assyrians, Babylonians, Persians, Portuguese, the Arabs, and the British.

Background

Economy - overview: In well-to-do Bahrain, petroleum production and refining account for about 60% of export receipts, 60% of government revenues, and 30% of GDP. With its highly developed communication and transport facilities, Bahrain is home to numerous multinational firms with business in the Gulf. A large share of exports consists of petroleum products made from refining imported crude. Construction proceeds on several major industrial projects. Unemployment, especially among the young, and the depletion of oil and underground water resources are major long-term economic problems. In September 2004 Bahrain signed a Free Trade Agreement (FTA) with the United States - the first such agreement undertaken by a Gulf state. Both countries must ratify the FTA before it is enforced.

Policy History

Bahrain has a mixed economy, with government control of many basic industries, including the important oil and aluminium industries. Between 1981 and 1993, Bahrain Government expenditures increased by 64%. During that same time, government revenues continued to be largely dependent on the oil industry and increased by only 4%. Bahrain has received significant budgetary support and project grants from Saudi Arabia, Kuwait, and the United Arab Emirates.

Privatization could help Bahrain's economy. However, as of the spring 2001 the government of Bahrain still wholly owned the Bahrain Petroleum Company. Utilities, banks, financial services, and telecommunications have started though, to come under the control of the private sector.

Direct economic impact of housing

Total volume of foreign direct investment (FDI) in Bahrain in 2011 about $ 300 million, despite the civil unrest experienced by the country, in addition to the growth forecast by 3.5% and 4.1% in 2012 and 2013

Government in an effort to overcome the impact of the flow decline of foreign direct investment on Bahrain from Unrest in the country, announced economic stimulus package consists of spending $ 300 million on infrastructure projects and program worth $ 550 million to provide housing for some 50,000 families listed in queues government for housing is expected to be concentrated housing development the government in the areas of mission of the Kingdom include the city north and east of the city limit and east vest, but did not announce the distribution of units in the form of apartments and houses remain Troubling issue for Bahrainis with low intake.

Economic factor that affect the housing markets

A property characteristic of scarcity and stability without other forms of goods traded in the market, and it gives him a set of display properties:

1 - Manpower and construction materials: the availability of the workforce (price and cost of labour force) and the availability of construction materials (price and cost of construction materials)

2 - Governmental and financial controls: the change in the spatial conditions of the building and subsidized housing programs of the government and the value of bank interest.

3 - Change in property taxes: tax returns and profit of the proceeds of the sale of the property, registration and tax exemptions.

Factors affecting the demand:

Affected the real estate market due to factors affecting demand for any other commodity but it is more influenced by the property that the advantage of stability.

1 - housing census: the greater the population the greater the demand for real estate, demographic change in format (numerical) changed with the demand for real estate for better or for worse, the demographic change in the age and size of the family and its impact on the quality of the property.

2 - the unemployment rate and the level of salaries: affects this factor on the ability of consumers to buy real estate, and has a direct link between financial stability and the process of buying and selling real estate, you may prefer some people to postpone the purchase until stability and employment status or may be forced to sell the property in case of loss of employment and the transition to place less value, some people may prefer to rent rather than buy until the job stability and salary increases.

3 - occupancy rate:

- Occupancy rate: is the ratio of the real estate used to the proportion of real estate on the market.

- Unused real estate rate: is the ratio of unused real estate to the proportion of real estate on the market.

Housing Finance

That funding for housing system remains one of the biggest challenges facing the implementation of housing projects in the region, and the difficulty of access to traditional sources of financing in the wake of the global financial crisis and renewable growing tension in the market, looks a Bahraini companies to study alternative structures for funding in order to ensure continued provision of housing In today's market.

In this context, discussed the fabric of real estate partnership program between the public and private sectors with the Bahraini government; a possible future partnership would ensure the building of 4 thousand housing units in a reasonable time, specially designed for the resident population in Bahrain. Another major challenge facing the implementation of housing projects, which is the current concept of housing "affordable." Traditionally, many developers implement low-cost housing projects and low quality, which did not attract buyers, but also lost tenants, and in the end resulted in marginal profits for companies and communities are not sustainable for the region. It is noteworthy that Diyar Al Muharraq, a regional developer in Bahrain, leading real estate development projects convenient and low-cost and high quality at the same time. It is important to note that there are new methods of master planning; design and construction are also used lead by companies in Bahrain and across the region, including the ARM JM and Gerokon Middle East. The success of providing affordable housing to access vital to sustainable housing finance systems or mortgage. In this context, consider Sakana Holistic Housing Solutions, a leading regional nascent mortgage market in Bahrain, to government regulations as a key element in the development of more advanced solutions to housing finance.

Housing sector problem

Housing sector in Bahrain dire need of those indicators are based on data and information which is monitored by Department of Statistics and Information, centrally or through the system and the subdivision statistical, it is economic indicators related to the housing sector, such as the average price of housing for the average household income, and the average rent housing for the average family income leased and the average price of land developed to the average land price of crude, and the proportion of housing eligible systematic Total housing, and the number of housing produced annually for the population, and residential investment for GDP and other economic indicators numerous, we can from which to predict an early problem of housing in any city of cities in the Kingdom, as well as in monitoring the problem through what may be accompanied by phenomena such as the high price of residential land and the like, and deal with such phenomena associated in good time before they escalate, and also to know the extent of the start of the stage behind us for this problem and start to overcome them through indicators subsequent which monitors the data and address the consequent potential downsides.

Importance and Function of Housing

Roles of Housing

The food, shelter, and clothing are the three basic things necessary for humanitarian, housing is investigating the request of the psychological need for shelter. The shelter protects the rights of any inappropriate conditions and also

Protect it from other people. The housing inappropriate may result in discomfort and disease and may lead to death. The shelter may lead to the provision of certain physical needs, and social, cultural and psychological.

Housing Psychological Effects

Humans can live under the minimum conditions for the homeless must be lose the roles carried out by the housing thoroughly. Since the housing affects people in terms of psychological and social development. The quality of housing and the overall design of the rooms, and the amount of privacy and open spaces and how to meet the personal needs, all of this might affect the trends and mental health, and personal relationships overlapping, and consent to family life.

Often connects people dwelling family and therefore may be of the same building significant spiritual impact on occupants. It is difficult to separate the effects of all those social psychological, where there are many factors related to mental health. It is difficult to estimate the impact of housing on the observed behavior and mental health as there are many factors

Social overlapping and which may affect the individual's behavior and mental integrity at the same time.

Housing Cultural Effects

The qualities and the number of housing greatly affected by the culture of the people who inhabit it. Every culture known behavior of her group, which teaches through a process of social normalization of conduct known as cultural criteria and individuals who belong to a certain culture feel strongly about the need to keep pace with standards sacrifices for a walk with this culture. The inability to align with the standards result in negative reactions from the community, for example, a sense of pressure or Sense of normalcy in a particular aspect of a person's life. Cultural norms include those standards on housing available and desirable

The standards describe the quality of housing construction and the quality of property (rent, ownership) and the amount of space and quality, cost, and neighbors that all those affected by standards and different for different ages of family members, family formation. despite the presence of a private bedroom for each child may not represent a psychological need in humanitarian housing but it is an urgent necessity in some societies such as the American family, especially if they include children in stage

Adolescence as each son of his activities and various hobbies and friendships At this stage needs children a sense of independence, liberty, or absolute reliability parents and so may appear manifestations of frustration and pressure on children at this age if it did not correspond to their needs privacy. This is so different behavior for other groups of people with other cultures in other parts of the world.

The Importance of Housing

The housing is a real place that feels the rights of privacy and it can show his true character. The housing is the link between man and society. present noticeable that family members are trying to create some kind of convergence and balance and pathological relationships between basic needs, values ​​and housed. To provide housing from which to influence human behavior must be weighed between the available alternatives for housing different between the desires of individuals themselves this, which confirms that it must take into consideration this to achieve integration between housing needs and construction or housing facility there are some needs and requirements have the status of common people and despite it is because every family have order requirements and desires and also their needs. The importance of housing and different roles granted to an individual resident

Or family inhabiting dwellings. Housing gives the individual a sense of place and sense of connectedness and sense of privacy also gives shelter occupants a sense of psychological recovery and the strength and courage ... etc. It also gives an opportunity for its members to create and innovate. To Apartments importance of major health point of view of the individual or the group.

Housing Needs

The concept of housing needs is a broad concept and comprehensive on multiple aspects of housing among these multiple needs, humanitarian needs, including those related to the provision of protection from inappropriate airspace and also psychological needs and which ones need for safety. Among the needs associated with housing needs to observe cultural norms of the family and the community, for example, the number of bedrooms for each family, and it depends on the cultural norms.

Recommendations:

It is important to make government affordable housing a national priority. Should take into account the aspirations of the high number of the growing population of young people and the search for new ways to build affordable housing projects. It should be a serious plan of action involving the adoption of a national policy for housing that integrates economic and social issues and cultural side by side with urban planning and development. The strategy should include strong measures to provide accommodation for future population growth in large cities and encourage decentralization towards other centers in the suburbs of the organization. It should also expatriate population included. And should provide affordable housing systems cover the availability of financial and land, infrastructure, construction, and services, construction materials and maintenance.

Should involve both the public and private sectors. The private sector can coordinate with the government on housing and urban development through the provision of resources for the development of cash flows in the development housing costs affordable housing such as housing maintenance and repair, the private sector can play a positive role in easing the housing crisis by increasing monthly salaries for citizens youth.

Non-governmental organizations and local communities to participate in the planning and design of affordable housing models that meet the needs of the youth population, including the cultural and environmental aspects, technical and residential development. Those municipalities must play a key role as key partners in the website design and planning for housing projects to provide solutions to the needs of the community.

The focus should be on increasing build homes and small businesses affordable integration within cities, rather than being marginalized on the side lines, to prevent the emergence of slums. Developing in the suburbs, and should include the design of a modern infrastructure and urban public services and take into account the development of commercial centers and the provision of public transport and transit system for commuting to work and school. Should build quality is a priority, including the sustainability and "green buildings" to meet the concerns about the usefulness of the economy and environmental considerations and durability.

To make affordable housing more accessible and the Government should provide flexible financing options, and amendments to the existing property legislation, and the development of new mortgage laws that will govern the ownership, acquisition, forced evictions, and the liquidation of assets. It should encourage community mortgage programs for low-income people. Banks can lend assistance through the elimination of higher interest rates and in accordance with Sharia regulations.

The importance of the housing market on the economy

 That the housing projects at present an effective policy to get out of the recession, and contribute to the changing expectations Privately pessimistic about optimism, and thus higher morale and increased confidence that economic growth will return. The construction sector needs the support of the Ministry of State and the Ministry of Housing, to stimulate the economy to promote the return to activity and movement where everyone is a winner of the contractors and citizens

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