Bahrain, Property Market Outlook, Spring 2015
The ongoing weakness in oil prices is starting to temper overall market activity, with both the residential and office sectors feeling the impact. The retail market however, remains resilient and continues to outperform expectations.
- The performance of the residential rental market has been tempered slightly by the weakness of oil prices, which has a direct link to the level of office take up, the number of jobs being created and subsequently, the demand for accommodation.
- Unlike the residential lettings market, the outlook for the sales market is slightly more stable, which is in large part due to the government’s recent series of policy announcements designed to bolster residential investor sentiment.
- The office market has remained mute, with rents in Al Seef continuing to fluctuate between BD 5-5.5 psm, while there has been little movement elsewhere.
- The retail market continues to remain resilient and is still expanding, with international retailers mobilising to position themselves at the forefront of the buoyancy in the market.