With the political stability coming back to normal quickly, a major factor boosting the investors’ confidence, Bahrain’s realty market is set to further strengthen this quarter, according to a report.
This was the crux of the Cluttons Bahrain Market Update Q2 2011 which stated that the residential markets brought promise to tenants despite rents reduce up to 30 per cent.
Cluttons, the real estate specialist that has enjoyed a dedicated Middle Eastern presence since 1976 and with the largest footprint in the region, released its second Quarterly Market Update for 2011 published on Sunday.
Released at a time when careful measures to restore political stability in the country are being taken, the Report noted how Bahrain has returned to political stability which is good news as the country seeks to reverse the adverse effects on the country’s economy.
“If the current political stability ensues, I am convinced that a great deal of confidence will return to the Bahraini economy,” Stefan Burch, Head of Strategic Consultancy for Cluttons, said, while commenting on the economic viability of the Kingdom’s real estate future.
“One of the major challenges that still remain is of the efficient provision of affordable housing for Bahrainis. However, the good news is that with a large proportion of the GCC funds allocated to the housing sector, Government policies are reacting to meet this challenge,” he added.
The Report showed that the recent unrest has affected the residential market across Bahrain. “A shift in demand in the leasehold market has caused rent reductions of up to 30 per cent in certain areas forcing landlords to offer incentives to tenants in a bid to maintain occupancy levels. In the short term, it is predicted that the market will remain tenant friendly as rents look set to stabilize at current levels.”
“In the short to medium term we believe that supply will continue to outstrip demand, allowing tenants the opportunity to benefit from rent free periods and increased services. Gradually, the market will become increasingly two tiered as lifestyle developments succeed in attracting more and more occupiers,” he explained.
In Bahrain Cluttons has a diverse client base that includes many high profile clients including government organizations throughout the Arabian Gulf, major private property landlords, local and international banks, and many international corporate clients operating in the region.