Apartment capital values remain stable in Bahrain

MANAMA: Capital values across low-end apartments in Bahrain remained stable in Q4-2020 while other apartment market segments saw a marginal price correction compared with the previous quarter, as per the latest analysis by Savills.

The international real estate adviser has released its market highlights report on the kingdom’s property sector which also found that during the review period, capital values across high-end apartments declined by 1.3 per cent compared with Q3-2020 and 7pc compared with Q4-2019.

However, values across high-end villa projects remained stable compared with the previous quarter while prices across mid-end villas declined by 3.2pc year-on-year.

Rental values across the low-end and mid-end villa developments remained largely stable compared with the previous quarter.

The report quotes Savills Bahrain associate director and head of professional services Hashim Kadhem as saying, “We have found a disparity between prospective tenants’ offers and those being accepted by landlords. We expect this trend to continue for the near future while the supply pipeline steadily increases.”

Talking about commercial real estate, the Savills report notes capital values in Bahrain remained stable in Q4-2020 compared with the previous quarter, which saw a marginal decline.

Offices in the high-end segment recorded no price changes over the past six months.

Prices across projects in the low-end segment also remained stable on a quarterly and yearly comparison.

In terms of the rental market, an increase in employees returning to offices was witnessed during the last quarter of 2020.

As a result, rental values remained largely stable in Q4 2020 after three consecutive quarters of decline, finds the report.

The Real Estate Regulatory Authority and the Survey and Land Registration Bureau reported last month that Bahrain saw a decline of 11pc in the volume of real estate transactions for 2020, while the Economic Development Board said foreign direct investment into Bahrain remained robust reaching BD330 million during 2020.

“As the vaccination drive gathers momentum across Bahrain, the comfort levels in returning to the office may be sooner than expected,” said Mr Kadhem.

 

Source: https://www.gdnonline.com/Details/934801/Apartment-capital-values-remain-stable-in-Bahrain

 

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