The Kingdom of Bahrain’s real estate market to remain subdued for the next 12 months, according to global real estate service provider Savills. Residential rents across the Kingdom are now facing further downward pressure as supply outstrips demand.
Savills said that Bahrain has seen a significant shift in living patterns as many citizens in the kingdom are shifting from larger to smaller units. The shift is attributed to an increase in energy costs. Moreover, shifts have also been observed given the increase in supply by approximately 3,500 apartment units in a very short period of time.
The balance of supply and demand will be further disrupted with a supply of 4,322 units over the next four years when projects such as Golden Gate Towers, Oryx Bahrain Bay, Paramount Tower, Harbour Row, and Amwaj Gateway are completed.
In this regard, Harry Goodson-Wickes, Head of Northern Gulf at Savills told the media, “Over the past few years, Bahrain has adopted a series of positive reforms to diversify its economy and empower the private sector. Under the broader economic reforms, the government also launched the National Planning Development Strategy 2030 and established the Real Estate Regulatory Authority (RERA) to help the nation achieve an integrated approach towards urban development, increase transparency, promote investments while protecting the rights of consumers.
“However, government revenues have not kept pace with the overall diversification strategy and in addition to that, the onset of Covid-19 has undone a lot of progress made under the Fiscal Balance Programme (FBP),” added.