Demand for rental properties across villas and townhouses has remained strong across Bahrain during Q1-2022, shows new analysis from Savills.
The British real estate services firm released its Bahrain Market in Minutes report for the first quarter of the year, with a marginal rental price increase of 1.5pc to 2pc year-on-year (y-o-y) across the high-end and the low-end segment in the kingdom listed as a key highlight.
The report found that capital values across the residential real estate segment remained largely stable across the kingdom on a quarterly basis.
However, when compared annually, the capital value index for apartments and villas dropped by an average 1.2 per cent and 2.6pc, respectively.
Rents across apartments on the other hand have largely remained stable on a quarterly basis.
A revival in economic activity followed by a strong push from the government and a general improvement in market sentiment has led to an increase in demand for office space across the city, consequently leading to an increase in asset pricing, according to the report.
The value of real estate trading reached BD1.04 billion in 2021, an increase of 46pc compared to 2020 when BD717m worth of property transactions took place.
It was also 29pc higher than 2019 when properties worth BD804m were transacted.
The stability that was witnessed in the office rental market in 2021 extended into the first quarter of this year supported by the low-end segment, recording a 1.6pc y-o-y price increase.
However, the mid-end sector’s price correction has sustained, with the year-on-year rental price decreasing 5.5pc.
Hashim Kadhem, head of professional services, Savills Bahrain said: “We have noted an increase in inquiries from prospective tenants in relation to the Environmental Social and Governance (ESG) credentials of current office stock with higher interest for those possessing sustainability accreditations. Given the demand-supply imbalance in the market, developments which incorporate these demands will claim a larger share of the market going forward.”
The recovery also continues in the retail and tourism space. The number of mall visitors rose by 26.9pc year-on-year in Q1-2022 while the volume of commercial licences issued increased by 35.4pc y-o-y.
On the back of Formula 1 Gulf Air Bahrain Grand Prix 2022, international tourist arrivals increased by 50pc in Q1 compared with the same period in 2019.
Speaking on the outlook for the industrial and logistics sector, Swapnil Pillai, associate director research for Middle East said: “Bahrain has launched the fastest Global Sea-to-Air Logistics Hub in the region with only a 2-hour turnaround time for all containers. This means that products can reach customers in half the time it took earlier and at 40pc of the cost. This move is likely to significantly improve Bahrain’s position as a hub for logistics activity in the future.”
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