With pandemic restrictions lifted, CBRE takes a look at Bahrain’s real estate performance in the first half of the year.
“We have recorded occupier demand for greater incentives in acquiring new workspace, such as extended rent-free periods, although leading landmark properties are maintaining headline rents overall,” said Heather Longden, Director - Advisory & Transactions, at CBRE in Bahrain.
Longden’s comment comes after it was revealed that visitation to workplaces exceeded pre-pandemic baseline, climbing to 4.8% in March. Average rental rates across Grade A and B space remained stable in Q1 2022, as compared with Q4 2021, at BD5.25 per sqm per month, although transactional activity in the sector has been muted through the start of the year, reveals CBRE.
CBRE revealed that residential in Q1 2022 apartment sales rates increased by 2.3% compared to 2021, reflecting the first positive rate variation in recent years.
Average quoted apartment sales rates sat at BD878 per square metre for two-bedroom mid-to-high end properties across Bahrain, compared to BD831 in 2021.
“It should be noted that recently launched prime properties, including within Diyar Al Muharraq, have driven up average quoted sales rates. Average mid-to-high end apartment rental prices in Bahrain continued to decline between Q4 and Q1, falling by up to 12% QoQ for two-bedroom apartments, with the lowest change seen in three-bedroom apartments configurations. There continues to be growth in supply of apartment product across the Kingdom, and with subdued population growth it is anticipated that there will be further downward pressure on rents,” CBRE notes.
Looking at retail, CBRE reveals that Bahrain’s retail and recreation sector visitation witnessed a dip at the start of Q1 2022 compared to Q4 2021. “Branded retail occupiers, particularly in the fast food and convenience segments, are continuing to pursue expansion strategies. Drive-thru concepts remain popular to meet the expectations of customers. Successful neighbourhood and community developments are demonstrating the case for a balanced tenant mix that offers retail, F&B and community services,” says the consultant.
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