Bahrain

Bahrain’s real estate sector back to pre-pandemic level

Bahrain’s real estate market has achieved significant growth last year to support the country’s post-pandemic recovery.

Real estate agents said that with the help of the government and the private sector, the economy is now moving in the right direction. According to a report by Knight Frank, apartments are becoming more popular than villas, owing to lower unit prices and reduced expenses of upkeep and maintenance.

Average rental values across apartments rose by 5% on quarterly basis to BD565 per month, and the average price of an apartment rose by 4.3% to BD810 psm. Average monthly villa lease rates have risen by 7.7% in the last three months and stand at BD1,170, the average sales price for villas increased by 4.5% q/q, to BD625 psm.

The report notes that Reef Island remains the most expensive residential community in Bahrain, owing to its central location. Anecdotal evidence suggests that organisations that implemented hybrid working arrangements are now returning to full occupancy, driving up demand.

The average office lease rates increased by 1.6% q/q to BD63 psm. Bahrain’s retail market has experienced increased activity in the first half of 2022, with both lease rates and occupancy levels rising.

Mr Mohammed Al Qattan, Executive Director of Century 21 Bahrain, said, “The strain of the Covid-19 pandemic on the real estate sector can still be felt in the Kingdom; however we are very hopeful for an improvement in business activities.

“As a real estate company dealing with both residential and commercial clients, we have certainly seen a shift in people’s spending and lifestyle changes. Our customers have altered their spending to align with market trends.

“We see a great demand for drive-through shops, and single story complexes, and the residential sector has seen improvement too. However, increasing utility bills are a concern for both residential and commercial tenants as the cost of living escalates.”

Meanwhile, Mr Muhammad Qasim Bakhsh, Managing Director of Al Ghani Real Estate, said that the business was back on track from the pandemic, but since last November, the market has once again been terrible.

“This problem exists around the world due to inflation, and people’s earnings have not increased in a very long period. During the pandemic, many individuals departed, leaving a large void that hasn’t yet been filled,” Mr Bakhsh said.

“People are moving from large properties to smaller properties, and in the Kingdom, large properties are 50% vacant. Landlords are refusing to lower rents, and high electricity is a result of this as well.”

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Source
newsofbahrain.com

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