Burj kadi -- any comments?

I have covered property investments in the GCC, specifically Bahrain, in the thread below:

https://www.expat.com/forum/viewtopic.php?id=885444

Basically, the property market was already in a big slump prior to the coronavirus making an appearance.  With the associated economic impacts, it is likely to get worse.  Personally, I would hold off on any investment right now unless you, yourself are planning to live there and save on your rentals.  Off plan, I would never ever recommend as a lot of people have been bitten by that in the past - and from reputable developers as well.  Also keep in mind that you CAN'T rely on title deed transfer to be done so easily as you WILL have to go through security clearance at that time.  And if that fails, you are stuck with an apartment that you can't transfer under your name.   Buyers of completed property apply for clearance at the time when they pay the token deposit - if it doesn't come through, that deposit is returned.  Off plan is much more of a risk for expat buyers with this additional hurdle.

On the price, it is on the higher side but that is how they pitch it for new buildings.  However, in even relatively new buildings which have been completed, you can find 3 bedroom for anywhere between 90 to 120K (and that is likely to even drop further as time goes on).  So I don't know why you would want to buy in an off-plan building which is not complete and has no proven market or rental value yet.   Also, don't just bank on Navy rentals.  Everyone wants those, not always around and buildings must comply with certain regulations to be "Navy approved".  Lastly, a 3 bedroom is a bit of an overkill for Navy as most go for 1-2 bedroom when single and the ones with the families, who qualify for higher rentals, live in villa compounds and not in apartments.

Theoretically, you are right in the sense that off-plan allows you to manage cash flow and then when the building is completed, the value goes up and you get a gain.  However, this theory is completely false when it comes to Bahrain.  If you read the thread which I have pasted the link to, above, you will see why that is the case.

I should have mentioned that I plan to live in the apartment with my family. The developer understands the point about security clearance and has offered to reimburse the deposit, in full, if it doesn't come through at the time of handover. The deposit would not be a meagre 1000bd in that case; rather, around 25% down payment of total amount.
That's what really brought me in. The other risks though still exist: not completing property on time, or at all, and also not returning the deposit (without a struggle).
I'm more concerned about the economy. I also anticipate a sharp decline in rentals and selling price but haven't yet witnessed it not even slightly.
On a side note, can somebody with a good heart tell me who is going to buy all these ultra luxurious residences in diyar muharraq, dilmunia, Bahrain bay etc? Saudis? Others? Is there really demand for these? From whom?

On the who is going to buy, go to the thread that I have pasted above already.  I have explained the type of buyer for property in Bahrain (in the property section and prior to the virus - many buyers of those types will disappear now).  Going forward, there WILL be a sharp decline in rentals as well as property prices.  Simply, no one is going to buy and keep in mind that the market was already slowing massively even BEFORE the virus.   As I said, read the thread carefully - most of your questions have already been answered by me previously.

Honestly, I would never risk 25% deposit just on the word of a developer - EVER.   And you don't know if they will go bankrupt after this economic recession - construction is hit very very hard.  My advice would be NOT to buy ANY property without security clearance or title deed in today's times (so that means completely exclude all off-plan) - no matter how much you love it.  The choice is up to you and your risk tolerance.

Thanks members for this exchange..Burj KAdi is on expat's minds for some time!
But off plan seems very risky at this time...however, im not sure why you are so cautious of off plan Xtang, I know of people in Bahrain, investing in off plan, paying off in couple of years and benefiting in the longer run, specially those who don't have lumpsum  amounts to invest...

Well there are people who have benefited and I also know a lot of people who have lost money. The reason I am cautious in today's environment is that we are potentially heading for a very bad recession and it makes it much more likely that projects won't get completed and / or people will lose their jobs and won't be able to pay. 

The additional factor, for expats (and not you as you are a local ), is security clearance. The clearance has gotten much tougher over the years and has bit quite a lot of people who applied for it after their properties got delivered.  Some of them are now stuck with properties they can't transfer under their names. Granted that it usually affects people from Sudan, Yemen etc but I also know a few Pakistanis who weren't cleared.  So you never know.