The residential sector in Bahrain looks set to suffer a major downfall in 2017, a new report has discovered.
CBRE’s H1 2017 Bahrain MarketView report has revealed that Bahrain will experience a shortfall of close to 75,000 units this year.
Looking at the current demand for residential real estate, Bahrain’s population statistics and household sizes have revealed that the demand stands at 290,000 units, while in reality only 216,000 completed units exist in the market alone.
The most significant contributor to the shortage has come from the low to middle income segment catering to the needs of Bahraini families.
The report has identified that there is hope, as there is an intensive government led strategy to close the increasing supply and demand gap, with a further 40,000 units scheduled to be introduced under a housing plan by 2020.
Looking at the rental property vs owning property markets, residential rents remain among the highest in areas such as the Seef District. This comes as little surprise, as the area is close to shopping malls, offices and other services and entertainment options.
Looking at home owners, 5 percent of the national population are Arabs, the majority of whom are rental tenants in the country.
You can read the full report here: http://www.cbre.bh/bh_en/research