Bahrain's construction sector is showing "robust" growth, with confidence among developers in the market rising, according to a new report by CBRE.
Its Q3 20916 Bahrain MarketView said the government is heavily funding infrastructure projects, while real estate transactions have increased by 11 percent in the second quarter of 2016 compared to the year-earlier period.
James Lynn, director, CBRE, said: "Increased activity in key master plan projects, including Amwaj Islands, Dilmunia and Bahrain Bay, primarily in residential and retail sectors, demonstrates improving local and regional developer confidence in the Bahrain market.
"Demand for commercial space is being driven in part by retail tourism, as well as the local population's growing appetite for more diverse entertainment options across the country.” he added.
The report said Bahrain’s economy witnessed encouraging growth in the non-hydrocarbon sector, but this was offset by contraction in the oil sector meaning deceleration overall in Q2.
CBRE said a number of new residential projects have been launched and are currently underway in the freehold apartment sales sector in key locations across Bahrain.
Bin Faqeeh Real Estate Investment Company continues to dominate the sector in terms of number of ongoing projects, with one of the developer’s most prestigious schemes under construction at Bahrain Bay.
Once complete, the Water Bay development will be the first residential property at the master plan project featuring three 10-storey blocks with around 600 luxury apartments and a retail floor. Completion for the project is scheduled for late 2017.
At Dilmunia off Muharraq, Bin Faqeeh is also constructing The Treasure apartments for freehold sale while another notable developer is Al Qaed Group and Cooperation Investment House who are responsible for both Essence of Dilmunia and the Hanging Gardens.
Seef Terraces, a luxury freehold residential development in the Seef District being developed by Dadabai has also been launched in 2016, with 173 studio, 1, 2 and 3 bedroom apartments, CBRE said.
It added that development activity in the retail sector continues at a steady pace, with neighbourhood shopping centre projects, bespoke food and beverage complexes and destination malls being built across the country.
Heather Longden, associate director, CBRE, said: "Recently introduced schemes range from smaller complexes, anchored by supermarkets and branded restaurants, such as El Mercado Mall in Janabiya through to larger developments that provide a wider variety of retail and entertainment, such as Seef Mall Muharraq."
She said a large percentage of newly developed and planned retail projects include a cinema component. The number of screens in Bahrain has increased from approximately 46 to 86 since 2014 with a further 60 screens in the development pipeline.
The most prominent and highly anticipated development in the destination mall segment, is the upcoming The Avenues on Manama corniche, opposite Bahrain Bay, expected to open in late 2017.
The CBRE report said the Bahrain office market is particularly competitive, with Grade A properties offering attractive rental rates to both international and local firms.
Longden added: “The combined Grade A and Grade B and subprime office stock is currently estimated to measure circa 1.45 million square metres in Q3 2016. Monthly quoting rents for high quality space are averaging BD7 per square metre, although prospective tenants are in a strong negotiating position to obtain lower rates and this is being somewhat exploited by some larger international occupiers.”For all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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