Oversupply continues to dampen Bahrain property prices, rents

Oversupply continues to dampen Bahrain property prices, rents

Oversupply continues to exert pressure on the real estate in Bahrain but the country's response to the coronavirus pandemic will spur recovery across sectors, according to new research.

The Bahrain Property Market Report by Cavendish Maxwell said the Gulf kingdom has continued to develop infrastructure projects with BD221.7 million in new tenders in the first half of 2020.

It said oversupply continues to govern residential property prices and rents in Bahrain.

Higher vacancy rates coupled with the completion of projects under construction are factors increasingly pressuring landlords to attract tenants, it noted.

The report added that the trend of subdued market conditions in the office sector has extended into 2020, primarily due to an oversupply of commercial spaces amid a protracted economic slowdown.

However, certain pockets have displayed signs of recovery with rents either holding steady or declining at a slower pace and occupancy levels are improving, albeit slightly.

Cavendish Maxwell added that authorities are preparing for a resurgence when safety is restored with a slew of digital campaigns to promote tourism post Covid-19.

Commenting on the report, Aditi Gouri, head of strategic consulting and research at Cavendish Maxwell, said: “In what has been a challenging year, Bahrain has suffered a dual blow from weak oil prices