MANAMA: Eight out of 10 (79 per cent) respondents to a new survey in Bahrain said they have received no rent reductions from their landlords as a result of the Covid-19 outbreak.
The Residential Tenant Flash Survey in August 2020 done by commercial real estate services firm CBRE also found that more than a third (36pc) requested a reduction but were denied by their landlords, whereas 43pc have not needed to ask their landlords for financial support.
The results show that just 21pc received rent relief of up to 20pc of their contracted rent.
CBRE said it did the study to gauge the sentiment of residential tenants in the wake of the pandemic.
To mitigate the impact of Covid-19 on people and businesses, the government announced in March it would shoulder the utility bills for April, May and June for all accounts.
In addition to paying the utility bills, the government also exempted municipal fees for three months for all individuals and businesses.
It further exempted industrial land rental fees for all businesses for three months.
A tenant who lives in Juffair told the GDN that his rent had been reduced by 10pc, although he had asked for a 20pc cut in proportion to the pay cut he had taken since April.
Another key discovery of the CBRE survey was the vast majority of residents (90pc) continue to live in the same family circumstances to those experienced before the outbreak.
According to the study, key factors for those seeking residential accommodation are outdoor space, with 63pc responding that having access to a garden or balcony is more important than ever before following partial lockdown measures.
On-site sports and leisure facilities are also driving decisions, with 56pc regarding amenities, such as swimming pools and gymnasiums, as high on the priority list.
In choosing a new property, tenants are starting to factor in the trend for more time working from home, with 37pc reporting the need to have an area within their home for an office or dedicated workspace.
Another 56pc of residents indicated that inclusive rental packages that covered utilities and municipality tax are favoured above exclusive rental options.
In tracking relocation activity, the survey found that a majority 80pc of those surveyed claimed that they had not adjusted their housing budgets in light of the Covid-19 outbreak, while 79pc have also made the decision not to move home in the remainder of 2020.
The survey shows that a clean and disinfected property will continue to be of high importance to tenants, with the vast majority at 78pc indicating that they wish the cleaning regimes to continue beyond the pandemic.
In conjunction, 57pc of respondents also consider that personal protective equipment (PPE) should continue to be used by property management and maintenance staff going forward.
“Covid-19 has had an impact on all real estate sectors in Bahrain, including the residential market. Property developers will need to reconsider their product offerings going forward, with innovative use of internal, as well as, external space to meet new demands of tenants and buyers alike,” said CBRE Bahrain director of strategic advisory services James Lynn.
“Working from home, has been on the increase over the past decade and has now, through necessity, proven to work well. We believe many people will continue to choose to work from home for at least part of the working week and therefore dedicated spaces need to be incorporated into floor plan designs with the required digital connectivity included.”
avinash@gdn.com.bh
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