Bahrain, Property Market Outlook, Winter 2017
Cluttons has issued its Bahrain Market Outlook report for Winter 2017/18.
After a challenging three years for the Bahraini economy following the collapse in oil prices in 2014, construction and infrastructure projects linked to the GCC Support fund are helping to drive strong non-oil sector GDP growth in the Kingdom.
However, demand for residential and office property remains static, maintaining the downward pressure in both segments of the country’s property markets.
Some of the headline points discussed in the report are as follows:
- Residential rents appear to be stabilising after retreating during the first half of 2017, although over supply concerns remain
- The demand for office space remains lacklustre and static, with a very limited number of enquiries; however rents for both fitted and shell and core space have remained stable since the start of 2017
- Aside from the clear risks to overall demand levels for both residential and commercial property that stem from any further weakness in oil prices, a number of downside risks are being monitored, including Value Added Tax (VAT) and the new Infrastructure Levy