According to international real estate consulting Cluttons, Bahrain's present economic stability began to impact its residential property market, stabilize prices and urge renters to seek for quality home alternatives. rental cars
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Increasing focus on higher-quality developments will impact rents on the top end of the market, according to Cluttons' Bahrain Residential Property Market Outlook for the winter of 2014. As a consequence, prices for such assets are anticipated to start rising in the next six months, with national stability spreading throughout the Kingdom leading to greater economic activity and therefore employment creation.
"The desire for a number of high-quality projects is now growing," says Harry Goodson-Wickes, head of Cluttons, Bahrain. For example, semi-furnished villas with four bedrooms at the Kazerooni Homes development in Saar rent about 1,800 BD a month. The high quality finishing perceived and the relative affordability of rentals attract the customers to such top class projects."
According to the research, school proximity has been a particularly powerful motivation to move existing residents, with families searching for homes near Manama's major schools. While that is a worldwide trend, confidence and prosperity return have reappeared in the Kingdom, with families increasingly selecting educational districts. Saar has taken advantage of this trend, driven by the elimination of isolated problems in the area.
The research also shows that the economic diversification of Bahrain will attract a wider variety of residents. It indicates that residential dependence on the daily rotation of US Navy personnel is complemented by a small rise in tenant demand in education, legislation and banking and financial services, with many new tenants in the Kingdom.
"We anticipate an even wider variety of tenant demands in the medium to long term," said Goodson-Wickes, "as other economic sectors gradually restart growth creating new employment and, therefore, households." The non-oil industry of Bahrain expanded by a factor of 2.3 percent in the first quarter, as government investments in infrastructure continue, with projects financing increasing by 2.4 percent over Q1 2013, resulting in greater market activity. This clearly has benefitted and continues to benefit the real estate sector."
According to Cluttons, Manama rentals remain steady year-round, with no adjustments in the first three quarters of 2014. In fact, rents are just 0.8% higher than last year, when rentals dropped by -0.2%, the lowest annual growth rate since quarter 2011.
According to the Survey, the most costly holiday villas in the Amwaj Islands remained in Q3 with average monthly rents of BD 1,275, while the most cheap holiday flats in Al Seef with rentals of approximately BD 700 per month. In the third quarter, one bedroom flats (BD 550 per month) remained the most inexpensive type of housing on Al Juffair, Al Seef, Reef Island and the Amwaj Islands.
"Bahrain's residential environment is clearly lacking in terms of implementing a deeper and more extensive affordable housing program to assist and achieve the National Housing Plan," stated Goodson Wickes.
"For this reason we anticipate Danat Al Madina development of Eskan Properties in Isa Town to be very attractive." We still anticipate developers in this area to show a lot of interest in the future."