Freehold apartments grow 31% in Bahrain: Report

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MANAMA: An estimated 9,950 freehold apartment units in Bahrain have been developed and are open to international investors as of March-end this year, according to latest MarketView Snapshot by real estate services and investment firm CBRE.

There was a growth of 31 per cent in units from last year to this year, said the report.

With a current pipeline supply of almost 7,000 units planned for delivery between 2018 and 2021, there will be a 70 per cent increase in available stock across this sector over a short three-year period, if developments complete construction on schedule.

The company said its research tracks these properties with a focus on six submarkets including Juffair, Seef District and Muharraq.

Prime sales prices for apartments in sought after waterfront and gated community locations increased year-on-year between the first quarter (Q1) 2017 and Q1-2018 reaching up to BD1,600 per sqm with exclusive branded products.

The fact that units are being offered at a wide range of price points starting at BD500 per sqm with a median sales rate of BD850 per sqm across all tracked submarkets, is also seen benefiting the market.

CBRE Bahrain Middle East research director James Lynn said: “Market dynamics indicate that with a significant increase in supply of freehold residential apartments forecast over the short-term combined with marginal growth in resident and GCC Arab buyer demand the local market should begin to see downward pressure on average sales prices as projects begin to complete and vacancy rates steadily rise.”

avinash@gdn.com.bh