The report was produced by ASK Real Estate, a Bahrain-based real estate service provider. It shows that the overall number of real estate transactions in Bahrain at the end of the third quarter of this year was 15,943. This is up almost 7% from the 14,921 transactions registered in the same period last year.
It was also conveyed how for the first nine months of the year, the total value of real estate transactions in Bahrain was BD799.2 million. This puts transactions in Bahrain’s real estate market on course to surpass the BD1.04 billion worth of transactions for the whole of 2021.
The report indicates that the real estate industry anticipates a fresh supply of residential and commercial real estate. However, given that they offer strong investment yields of between 8-10%, rental prices are predicted to stay constant in prime residential locations.
BAHRAIN’S STAGNANT COMMERCIAL OFFICE MARKET
Weak occupier demand and oversupply continue to be a driving force in Bahrain’s commercial office market.
Even though the Covid 19 pandemic made the situation worse, tenants have always historically preferred Manama's market. Yet, the recent sluggish economic climate led to a weakening demand for office rents across all market categories. This has led to Bahrain’s office market experiencing stagnation. The Rental rates for office investments in Bahrain vary between BD4 to BD7 per meter square. Investments into Bahrain’s office real estate segment also yield within the 8 to 10% range.
RESIDENTIAL PROPERTY IN BAHRAIN
In most of its regions, Bahrain's residential property rental prices have remained constant. If there is not also a rise in demand, new housing units are anticipated to put greater downward pressure on prices. The Avenues shopping centre’s recently revealed development is also likely to put more pressure on the area's property values and overall occupancy levels.
Bahrain’s commercial property market is also encountering high vacancy rates of approximately 40%. As a result, there are various schemes in place to try and attain higher occupancy rates.
Lower occupancy rates and greater drops in rental rates are also problems for older buildings. This is primarily due to their inefficient floor designs and bad parking arrangements.
Yet, Bahrain is quickly becoming a favoured destination amongst international tourists. So, this can act as a key driver in facilitating greater demand in Bahrain’s property market.
