MANAMA: Bahrain’s residential sector is experiencing a continued rise in villa supply, according to a new report by real estate services firm CBRE.
As of fourth quarter 2019, there were approximately 6,200 freehold villas targeting mid to high end buyers available in the market. This existing supply is spread across a total of 40 projects that are viewed as being either waterfront, gated communities or non-gated villas.
An additional 10 projects are currently under development, which will see an extra 5,150 units enter the market when completed.
These new properties are expected before the end of 2025 and will boost stock levels by 83 per cent to 11,350 units, further strengthening the kingdom’s residential real estate market for buyers and investors.
Currently, the most sought-after properties are gated community villas, which performed well in Q4 of 2019 with the sales rates increasing to BD690 per sqm.
The sales price gap between waterfront and gated community villas has closed year-on-year; this is likely due to buyers being unprepared to pay a premium for property in waterfront locations as well as the availability of more affordable options entering the market during Q4 2019.
“With the local real estate market continuing to display niche development opportunities in the residential sector, we are optimistic to witness a healthy environment for investments from both local, regional and international buyers in 2020,” said James Lynn, head of strategic advisory at CBRE Bahrain.
The report also reveals that three-bedroom villas had the highest average sales rates in fourth quarter last year across this asset class, which were quoted for BD685 per sqm.
This was followed closely by four-bedroom villa pricing which represented the second highest asking rates in the Bahrain residential sector.
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