Bahrain introduced new rules that aim to reinforce real estate transparency across all shared property areas. The Real Estate Regulatory Authority issued Decision No. (2) of 2025 to guide developers and owners. The decision sets clear standards, and it also improves the management of common areas within many properties. Additionally, it seeks to protect owners from unfair practices and unexpected expenses.
The authority created this decision to strengthen real estate transparency and to support fair treatment for all owners. The move reflects Bahrain’s broader push for improved property governance. It also aligns with the Real Estate Sector Regulation Law of 2017. The decision covers all common areas managed by developers outside owners’ associations. This clarity helps owners understand their rights and obligations.
The new rules require developers to secure proper licenses before they market or sell units. They must submit site plans and a full master plan. They must also identify all common areas under their responsibility. Furthermore, they must provide a draft regulation that explains how they will manage those areas. The authority reviews each request within forty days. Developers receive acceptance or rejection during this period. Silence counts as rejection, which encourages clear communication.
The decision gives owners stronger financial protection. It limits subscription increases to the actual cost plus a maximum of fifteen percent. This limit helps owners avoid sudden fee hikes. Developers must also open a dedicated bank account for subscriptions and revenues. The account protects shared funds and ensures proper use of the money. The authority can appoint an auditor to review the financial records if needed.
The new rules require developers to maintain accurate records for ten years. These records include contracts, complaints, insurance details, and maintenance logs. This requirement promotes real estate transparency and helps owners monitor performance. Developers must also insure all shared facilities. They must repair damaged parts and replace worn-out components without delay.
Owners gain a stronger voice through the owners’ committee. This committee includes three to nine elected members. They monitor the developer’s performance and review all budgets. They also communicate with the authority when concerns arise. The committee can request the removal of a developer in cases of serious violations. Developers can also resign under certain conditions, but they must hand over all documents to the next manager.
The decision obligates developers to prepare a long-term maintenance study. They must update it every five years. They must coordinate with the owners’ committee during this process. This study includes cost estimates and future repair plans. Owners cannot transfer property without a clearance certificate confirming payment of obligations.
Ultimately, the decision strengthens real estate transparency and improves trust between owners and developers. It also raises the overall quality of shared property services across Bahrain.
