Cavendish Maxwell has released its first Bahrain Property Market report for 2018/2019, revealing that retail continues to be one of the most stable sectors in the Kingdom.
Retail and tourism continue to be the standouts for the Bahrain economy while commercial and residential property prices decline, new research from Cavendish Maxwell has found.
The property consultancy's Bahrain Property Market Report for 2018/2019 indicated that, during 2018, rents and sale prices for apartments and villas in all four Governorates displayed a general trend of decline, while demand for affordable properties continued to show an uptick.
According to research, the retail sector has been bolstered by increased tourism and remains one of the most stable sectors of the Kingdom.
Construction of at least three malls is underway and is scheduled for completion over the next few years.
Senior Consultant at Cavendish Maxwell Aditi Hariharan said there had been lacklustre demand for commercial space in Bahrain to go with declining residential prices and rents.
"Residential prices and rents in the Capital, Northern, Southern and Muharraq Governorates of the Kingdom generally declined, with commercial office space mirroring the trend," he said.
"With 80 per cent of its revenues still attributed to oil, Bahrain perhaps suffered the most from the oil price decline of 2014," he said.
"However, diversification efforts by the Bahraini government with a focus on infrastructure development, coupled with the aid package from neighbouring GCC countries are expected to further support diversified growth for the economy."
According to Cavendish Maxwell, Bahrain’s GDP grew from BHD 9.7 billion in 2010 to BHD 14.2 billion in 2018, with mining, financial services and manufacturing being the top contributors to GDP growth.
Bahrain’s position also improved on the World Bank’s Ease of Doing Business ranking in 2019 to 62 from 66 in 2018, reflecting the heightened efforts by the country to attract foreign investment and stimulate entrepreneurship.
A BHD 12.1 billion infrastructure investment pipeline comprised of BHD 3.77 billion in government funding, BHD 2.8 billion from the GCC Development Fund, and BHD 5.65 billion from the private sector has given a boost to the construction sector and supporting industries.
Click here to view the full report.
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