Residential capital values hold steady in Q1 2022

Residential capital values hold steady in Q1 2022

Dubai, UAE: Capital values across the residential real estate segment have remained largely stable across Bahrain on a quarterly basis, according to Savills Q1 2022 Bahrain Market in Minutes report. However, when compared annually, the capital value index for apartments and villas dropped by an average 1.2% and 2.6%, respectively.

Demand for rental properties across villas and townhouses has remained strong across Bahrain during Q1 2022. This led to a marginal rental price increase of 1.5% to 2.0% y-o-y across the high-end and the low-end segment. Rents across apartments on the other hand have largely remained stable on a quarterly basis.

A revival in economic activity followed by a strong push from the government and a general improvement in market sentiment has led to an increase in demand for office space across the city, consequently leading to an increase in asset pricing, according to the report.

The stability that was witnessed in the office rental market in 2021 extended into the first quarter of this year supported by the low-end segment, recording a 1.6% y-o-y price increase. However, the mid-end sector’s price correction has sustained, with the y-o-y rental price decreasing 5.5%.

Hashim Kadhem, head of professional services, Savills Bahrain said, “We have noted