Plans have been announced to build 3,000 affordable homes within Bahrain's major Diyar Al Muharraq development.

The BD200 million project, which is set to take off in May, is expected to be completed by the end of 2013.

It will help support the huge demand for affordable housing, said Kuwait Finance House managing director and chief executive officer Abdulhakeem Alkhayyat.

'The three, four and five bedrooms independent units will be priced starting below BD100,000, which we feel will be very competitive, considering all facilities will be in-built,' he said during a Press conference at the company's offices in the World Trade Centre.

Alkhayyat said for the first time in Bahrain, each unit would have facilities for setting up rooftop gardens, using the latest scientific technology.

'We intend to landscape the entire area, but each house will also have a rooftop garden to give a clean and green look to the entire area,' he said.

He said the investment was evidence that Bahrain's economy was alive and kicking and poised to take off again after the recent political turmoil.

'With this investment, we and our partners have proved we have faith in the country's economy and its leadership and is a signal for others to take similar measures.'

Alkhayyat said there was no doubt about Bahrain's resilience.

'This project will contribute between 0.25 to 0.5 per cent to Bahrain's annual growth rate and also to its gross domestic product,' he said.

'Besides, it will create thousands of job opportunities for small and medium enterprises as well as large companies.'

Alkhayyat said the company was also looking at future projects in collaboration and partnership with the government.

He said mock-up villas will be ready by September after which bookings will be accepted.

'We are expecting a significant amount of interest in the development, more so because it is part of the BD1.2 billion Diyar Al Muharraq project,' said Alkhayyat.

Located on the northern shores of Muharraq, the development is a unique self-contained master-planned city that will provide a mix of residential and commercial properties.

It will feature housing for more than 100,000 people in 30,000 housing units, extending over an area of 12 square kilometres.

Alkhayyat said project designs had already been completed and invitations for tenders to construct the units issued.

He said the private sector has responded positively to the government's call for more low-cost housing.

'Bahrain faces a shortage of affordable housing for the lower and middle income segments of the market, a situation that is not expected to improve in the near future,' said Alkhayyat.

'It is crucial that the public and private sector combine their efforts to accelerate the delivery of housing for these segments in the short to medium term.'

He said around 53,000 people were still waiting for government housing and 4,000 were being added to the list annually.

He said the company and banks would provide financing schemes for potential buyers.

Alkhayyat said for every group of 400 to 500 units, there would be a community centre that will include shops, playgrounds, a mosque and other amenities.

'The project is unique in that it will include fully integrated modern infrastructure including roads, street lights and landscaping and will be within a walking distance from public water fronts, public beach fronts and public parks,' he added.-TradeArabia News Service