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Bahrain - Property rental prices in the Southern Governorate dropped by a whopping 12.7 per cent last year, according to a new report.
The latest report released by Propertyfinder, a regional online real estate website, showed that rent prices for apartments in the Muharraq Governorate also declined by 2.4pc between the first and second halves of last year.
Prices for apartments for rent in the Northern Governorate remained relatively stable, with only a 0.8pc drop, in the same period.
However, the report stated that Saar remained the number one area in the country for villas for rent, while Juffair continued to reign among apartments for rent and sale, and Amwaj Islands was the most searched area for villas for sale.
The findings were based on the properties listed on the site and the top searched areas for residential and commercial properties.
“While new and emerging areas are starting to gain more popularity in Bahrain, the top searched areas in the country remain somewhat unchanged, with Juffair being the top searched area when it comes to apartment rentals,” said Propertyfinder regional director Bahrain Monsi Rabah.
“Affordable demand is on the rise in Bahrain, which has resulted in a shift in user behaviour, asking price, as well as a shift in strategies by landlords, owners and developers.
“Apartment prices in Galali recorded a minor decrease from BD350 to BD346, and prices for apartment rentals in Busaiteen also decreased from BD475 to BD 450.
“Hoora, located in the Capital Governorate, recorded the most significant decline, dropping from BD446 to BD393, which is largely due to the emergence of newer properties and more affordable units in other areas in the country.”
The report also stated that real estate market witnessed an overall decline across all governorates with the exception of the Capital Governorate, which recorded an increase in villa sales only.
It also showed that villas for sale in the Capital experienced steep price changes, increasing 6.8pc during the same period.
“Prices for apartments for rent in the Northern Governorate showed the most stability, with only a 0.8pc drop in prices recorded when comparing January to June 2018 and July to December 2018,” added Ms Rabah.
“The highest difference in price was recorded for apartment rentals in the Southern Governorate, at 12.7pc during the same time frame.”
The top three affordable areas for residential apartment rentals last year were West Riffa (average price BD306), Riffa Al Sharqi (BD315) and North Riffa (BD328), while the top three affordable areas for villa rentals were Diyar Al Muharraq (BD756), West Riffa (BD762) and Salmaniya (BD775).
Seef District and Manama continued to be the highest priced areas for office rentals.
Areas such as Mahooz, Sanabis and Umm Al Hassam, which are considered to be central commercial locations, also fell in the highest prices areas.
The report also credited Bahrain Bay for “rejuvenating the sale market in Bahrain”, as it offered a number of luxurious high-end properties in one of the countries newest freehold areas that has prompted both local and regional investment.
Meanwhile, Ms Rabah explained that 2018 was an active year for the real estate market, particularly with the launch of the Real Estate Regulatory Authority (RERA) in the third quarter of last year.
“The regulation of the real estate market will create a safe and transparent environment, which will boost investments in the country and reignite the sale market, be it from local or regional investors,” she said.
Domains Real Estate managing partner Mohammed Aljawad, who also contributed to the report, said RERA’s formation was crucial to stabilising the market because in the past many exploited the absence of a real estate regulatory body.
“Over the years, and in the absence of an official organisation that regulates and follows up on the information on the real estate market, some intermediaries, unfortunately, exploited the local market,” he said.
“The lack of transparency in the market affected customers and led to a loss in investment.”
He also predicted growth in the real estate sector was expected to continue over the next two years, especially with accessibility to neighbouring countries.
“Bahrain has always been positively affected with any regional developments, now more than ever, as more investment is taking place throughout the GCC market,” he added.
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