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Quality homes in demand in Bahrain

MANAMA, October 16, 2014

Economic stability has begun to impact on residential rents, by stabilising rates and encouraging tenants to turn their attention to higher quality schemes in Bahrain, according to new analysis by Cluttons.

A new report from the international real estate consultancy indicated that increased focus on higher quality developments will begin to put rents under strain at the top end of the market, reported the Gulf Daily News (GDN), our sister publication.

In its 'Winter 2014 Bahrain Residential Property Market Outlook', Cluttons has anticipated that asking rates for such properties will start to nudge upwards over the next six months, as stability sets in more widely across the kingdom, driving more rigorous economic activity and therefore, job creation levels.

“Tenants are drawn towards top tier schemes by the perceived high quality finishing and relative affordability of rents,” Cluttons Bahrain head Harry Goodson-Wickes told the GDN.

According to the report, proximity to schools has been a particularly strong driver for the relocation of existing tenants, with families seeking out accommodation within easy access to Manama's main schools.

The report also expected economic diversification to bring a wider range of tenants to the kingdom.

It indicated that the market's dependency on rotation of US Navy personnel is starting to be complemented by slight upturn in tenant demand from the education, law and banking, and financial services sectors.

“Over the medium to long term, we expect to see an even wider range of tenant requirements, as other sectors of the economy gradually return to growth, creating new jobs and therefore households,” Goodson-Wickes added.

According to Cluttons, rents across Manama have held steady, over the course of the year, with no change being recorded through the first three quarters.

In fact, rents now stand just 0.8 per cent ahead of this time last year, the lowest rate of annual growth since the fourth quarter of 2011, when rents slipped by 0.2 per cent.

“There is a definite gap in the Bahraini residential landscape for the development of a deeper and more widespread affordable housing programme to support and deliver the National Housing Plan,” he said. - TradeArabia News Service




Tags: demand | rent | Quality | house | estate | real | stable |

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