Expatriate workers employed by companies relocating to Saudi Arabia’s Eastern Province are increasingly opting to live over the border in Bahrain and commute to work in the kingdom, according to a residential property report released on Monday.
“The Bahrain rental market has also seen the emergence of a new micro-market,” real estate consultancy firm Cluttons said in its third-quarter Bahrain residential property report.
With many of these expatriates who are relocating to the Eastern Province choosing to live in Bahrain, it is having positive impact on the stagnant residential market in the island state.
“Several self-contained developments have, or are being, developed to meet this new demand with asking rates higher than elsewhere, ranging from BD1,400 to BD2,000 (US$3,712 – US$5,303) per month, which is significantly above the market norm,” the report claimed.
However, overall sales prices and rental rates across Bahrain are under pressure from the increase in landlords opting to sell their properties in a bid to reap a return on their investment and new units coming on stream in existing developments.
One example of this is Manara Developments, which recently announced the launch of Phase 2 of its Wahat Al Muharraq residential development. While the first phase contained 47 villas, phase 2 will add an additional 180 villas priced from BD98,600 (US$259,891).
As a result, the oversupply issue has led to “many areas experiencing a decline in rental values over the last six months as the perception of a ‘renters market’ is driving many tenants to bargain hard for lower rental rates,” the report concluded.
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