Bahrain is suffering from a housing shortage of about 75,000 units in 2017, according to a new report by CBRE.
Its H1 2017 Bahrain MarketView report said the majority of the shortage is in the low-to-middle income segment catering to the needs of Bahraini families.
Current demand in 2017 based on population statistics and typical household sizes is for 290,000 units while there are only 216,000 completed units across all property types in the market, CBRE said.
It added that an intensive government led strategy is underway to close the supply/demand gap with 40,000 units scheduled to be introduced under the housing plan by 2020.
James Lynn, director, CBRE Bahrain said: “Areas popular with expatriates for both apartment rental and sales continue to be Juffair, Seef, Amwaj and Reef Island. One of the most active districts of Bahrain for new residential development is Juffair, where there are a number of large scale residential tower projects under construction and planned for completion in 2017 and 2018.
“This is anticipated to lead to a significant increase in freehold supply over the next 2 years in this area of Bahrain (Juffair).”
In terms of rental rates, CBRE said residential rents remain among the highest in Seef District, including Reef Island.