gitolite + cgit: No repositories found

Question

I've set up and configuered gitolite and wish to configure the cgit web interface to it.

Problem:

When browsing a directory using cgit I get the error:

No repositories found

Setup

When a new repository is created gitolite creates a corresponding directory to it under /home/git/repositories automagically. cgit is configuered to read these repositories using:

project-list=/home/git/projects.list 
scan-path=/home/git/repositories

The problem is that these repositories doesn't seem to be bare repositories. If I instead manually clone one of these repositories using

git clone --bare user@server:repo

it seems to work. I really don't want to do this manually every time a new repository is checked in. Why aren't the repositories created by gitolite bare already? How can I automate this?