A DELAYED housing initiative in Bahrain took a step forward following the securing of $450 million (BD169.7 million) finance from Ithmaar Bank.

Construction will soon start on thousands of affordable homes in what would be the first public-private partnership (PPP) housing project in Bahrain, project developer Naseej has announced.

“The construction of more than 2,800 social and affordable housing units in Al Madina Al Shamaliya (also known as the North Bahrain New Town) and Al Luwzi will now get under way,” Naseej chairman Khalid Abdulla Janahi told the Gulf Daily News.

The first phase of units is expected to be delivered by June 2016, and the rest by 2017.

The vast majority of the homes to be built, more than 2,400, will be social housing units for the Housing Ministry. The remainder (367) will be of two kinds, apartments and villas, to be sold in the open market.

Among other developments, rising demand for houses will be met by milestone housing projects in Sitra, Samaheej, Galali and East Hidd development, which are a part of a series of government initiatives, the Bahrain government has said.

The Samaheej project features 530 housing units while Sitra development includes 978. In Galali, 609 houses were delivered to citizens in September.

Meanwhile, a new social housing finance scheme has been launched with the signing of an agreement between the Housing Ministry and private sector. The project, inaugurated by Deputy Prime Minister Shaikh Khalid bin Abdulla Al Khalifa, gives eligible applicants the option to move off the housing waiting list and buy a house either off-plan from an approved list of private developers, including Eskan Properties, Naseej, Manara Developments, Diyar Homes and Al Saraya Properties, or ready-made from the developer of their choice.

Purchases will be financed through an agreement between the ministry and four participating banks: Ahli United Bank, Al Salam Bank, Bahrain Islamic Bank and Kuwait Finance House.

The project is a new initiative by the ministry in partnership with the private sector in the five-year housing plan and aims to reduce waiting lists for residential units and diversify options for citizens to obtain homes at their preferred locations.

The agreements were signed by Housing Minister Bassem Al Hamer and representatives of the banks and real estate developers.