Bahrain's property market has bottomed out - CBRE

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Bahrain's real estate market has bottomed out but continuing political unrest is still holding back an upturn, CB Richard Ellis has said in a new report.

The real estate firm said the residential leasing sector in most areas has now stabilised in terms of their occupancy and rate.

The report said: "Whilst it is clear that the real estate sector has 'bottomed out' in terms of rental rates and sale prices, it is also clear that huge pent-up demand is waiting to cash in on the Bahrain upturn - when it happens.

"It is unclear when this will take place, but talks between the various opposing parties in Bahrain's political landscape are key to this topic and there is little indication that agreement or even meaningful discussions will take place in the short term."

CBRE said the main expatriate areas of Amwaj Islands, Saar, Hamala and central Manama have shown little movement in the first quarter although there has been some pick-up on Reef Island.

"Residential rental rates have hit their lowest point and have been stable at these levels for several consecutive quarters," said CBRE.

It added: "Anyone wishing to upgrade, relocate or pick up a bargain would be best advised to start this process in the very short term because it seems unlikely that there will be any further downward movement in the market."

CBRE said Reef Island has proved particularly popular to new residents to Bahrain while Durrat Al Bahrain continues to act as a popular second home (weekend) destination.

It added that mortgage lenders are reporting 10 percent growth in sales prices over the past six months in Riffa Views.

Riffa Views unit prices have now risen by around 20 percent compared to 2011, driven largely by Bahraini families.

The total value of real estate transactions in Bahrain grew by 46 percent in 2012 compared to 2011.

The biggest increase came from Bahrainis and non-GCC expatriates although the increase by expatriates was more down to the delayed registration of purchases they had made in previous years than new purchases.

Related:
Companies
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Coming to America

Coming to America

As Barack Obama seeks to rebalance the bloated US economy, the...

Trump casino resort business files for bankruptcy

Trump casino resort business files for bankruptcy

The Donald founded the companies but is now suing them to have...

Do celebrity branded projects ever work?

Do celebrity branded projects ever work?

The long list of celebrity-endorsed real estate developments...

1
Most Discussed
  • 12
    Has Narendra Modi already lost the plot?

    Modi was quiet all along and did not utter a word regarding the attacks on minorities and their institutions. It took Obama's address to him to atleast... more

    Saturday, 28 March 2015 2:25 AM - Ali
  • 11
    Nakheel PR: The toughest job in Dubai?

    On service charges.

    We were overcharged for years by Nakheel so that those loans could be paid back.

    The dramatic cuts have come to nothing... more

    Friday, 27 March 2015 7:32 PM - Pondersome George
  • 6
    Drunk passenger who slapped air stewardess jailed in Dubai

    Its high time airlines ban alcoholic drinks on board or limit it to just one drink. There are many passengers who love the free alcohol and keep drinking... more

    Saturday, 28 March 2015 2:25 AM - Azk