Bahrain’s property market is remaining resilient as the end of 2016 approaches, with rents staying stable.
The Kingdom’s economy has been weighed down by the oil industry’s performance in recent years, which has had a knock-on effect for employment levels and, as a result, the real estate sector. Nonetheless, Bahrain’s property remains resilient, with research from Cluttons forecasting continued stability in 2017.
The report highlights the resilience of rental budgets in the residential market which, in the face of economic fallout and rising inflation, “continue to outperform expectations”.
In the residential market, almost no areas showed any changes to rents, with the exception of Amwaj Islands, where there was a marginal BD 50 per month rise for four-bedroom villas.
“Our experience shows that quality and perceived value for money continue to drive interest in newly launched schemes, suggesting that tenants are very much in the driving seat and can cherry pick from a range of options on the market,” says Harry Goodson-Wickes, head of Cluttons Bahrain. “At Segaya Views and Cebarco Tower for instance, we have recorded a steady level of enquiries for the 140 furnished one-, two- and three-bedroom apartments on offer, with rents starting from as little as BD 650 per month.”
Faisal Durrani, Cluttons’ Head of Research adds: “Households in Bahrain have been faced with some very challenging headwinds over the past 12-18 months, with subsidy removals and job security fears denting confidence and driving down budgets, but we appear to be entering a period of stability with the market flattening out. We had previously expected to see rents decline by 5 per cent on average through the course of the year, but we have now revised up our forecasts for the residential rental market, with little to no declines now anticipated as we head toward the end of 2016.”
In the office market, the stability “borders on stagnation”, adds the report, with Cluttons finding “largely no change in rents” during the first nine months of 2016, aside from the Financial Harbour. The same can be said for a “remarkably sluggish” retail sector, with rents expected to hold steady for another six to 12 months.