Premium Bahrain property slumps by half over unrest

  • Share via facebook
  • Tweet this
  • Bookmark and Share
(AFP/Getty Images)

(AFP/Getty Images)

Real estate values in two of Bahrain’s biggest business hubs, Seef and Juffair, have fallen by 50 percent since unrest in the kingdom began nearly two years ago, according to a report from a local government official.

According to Gulf Daily News, the report, which was written by Manama Municipal Council vice chairman Mohammed Mansoor, said that it would take two years for the market to recover fully due to a lack of demand.

The research stated that the value of land and property set aside for investment in the two areas has slumped to BHD100 (US$265) per sqft since the start of unrest in February 2011, while only a few investors had pushed ahead with development projects.

"Many are not willing to start investment plans on their plots because they are worried that they may not get their money's worth in future as Bahrain's market is already oversaturated and can't withstand an unnecessary influx," Mansoor said in the report.

"Millions are at stake and investors can't wait for seven to ten years to get their funds back or register profitability.

"The market has shown recovery that has brought the investment rate to 50 percent from the potential expected, but the remaining 50 percent is still an issue that needs addressing."

The study, which was designed to help local councils solve the impasse in the property market, suggested that more relaxed regulations would help the development of emerging areas of Bahrain.

"We assure people that we will not allow multistorey buildings in residential areas, but there are commercial districts that are good for multimillion dinar investments that we could allow to be utilised, especially in areas that are good investment hubs," Mansoor said in the report.

"Tubli and Muharraq, for example, are emerging areas that are showing good signs, but require a relaxing of classification rules to have more investments in them.”

In October, local property consultant Cluttons warned that while the office market had stabilised due to more leases being signed towards the end of the third quarter of 2012.

“However, rents are not expected to rise in the short to medium term due to increased supply coming to the market. It is also likely that occupancy rates will continue to fall towards the end of the year.”

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
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
Is this the end of the Gulf’s Indian cash dash?

Is this the end of the Gulf’s Indian cash dash?

From currency woes to taxation loopholes closing and a clampdown...

3
Most Discussed
  • 16
    ‘How my Dubai mortgage landed me in a police cell’

    loans in any form need to filtered with the terms and condition, assuming thing will be in order is not excuse, one need to check with banks when property... more

    Friday, 31 October 2014 5:49 PM - Jacob
  • 10
    Do you actually own your house?

    This is unbelievable from Nakheel. In a case where we want landscape our garden with some tiles and grass costing around 12500, Nakheel is demanding a... more

    Thursday, 30 October 2014 9:06 PM - skp
  • 1
    Men arrested for working in women's shops in Saudi

    “We won’t spare any mall or shop employing expatriate men to sell women’s accessories,” the ministry’s director general in Makkah, Abdul Monem Al Shahri... more

    Friday, 31 October 2014 12:22 PM - cba