It’s not easy to sell real estate in Bahrain, given the fact that the Kingdom is still to get back to economic normalcy, mainly because of the slump in oil prices. As a result, the private developers in the Kingdom have been experiencing serious problems getting massive projects underway. However, there is still a sense that recovery is close at hand.
Gradually, developers in Bahrain are beginning to sell residential properties such as middle-income villas in greater numbers. Sure, this is nowhere close to how things used to be in the past, but at least, that’s a start.
CBRE, a leading international real estate services firm reported, “Naturally, this presents some opportunities, and the focus now is more directed towards planning for the next growth phase rather than managing the stalled environment in which most projects have found themselves recently.”
The demand for low cost housing is really high because of the increase in population; however the demand is yet to be met by an equivalent supply. Most people in Bahrain cannot afford to buy prime real estate in the country even though the prices have dropped quite significantly.
That’s why much of the demand here is focused on low-cost or middle-income investments. Inexpensive apartments are in great demand in Bahrain for this reason, and the rental market is doing fairly well as well.
There has been a drop in speculative investment in Bahrain properties as wealthy Bahrainis have put off buying high end properties in Bahrain, at least for the short term. So the focus is pretty much on the middle-income segment.
As CBRE states in its report, “Sales to expatriates and investor/speculators remain minimal at the moment but may well be stimulated in the near future by the perception that the Kingdom has pressing housing needs across a variety of sectors and locations, and current prices may well represent good value in the context of likely future movements.”
There has also been a rise in the number of foreign investors looking to buy properties in the Kingdom. Mostly, these investors tend to be expats working for the various oil companies active in the region. What these investors look for are well maintained and well protected facilities, with proper security.
Rental costs have stabilized to a large extend as well because of the drop in speculation. Rental properties are in fact in great demand in Bahrain and have arrested the decline in prices somewhat. While prices in Bahrain real estate still remain in their lower levels, most homeowners have decided to put off the sale of their properties for later, hoping for things to return to the highs of 2009.
Mike Williams, a senior real estate analyst says, “Landlords are increasingly indicating they would rather leave properties vacant than accept lower rental rates, although this behaviour is not consistent throughout the market, and is largely dependent on whether properties are owned with or without leverage.”
There has been a gradual return to social and economic stability in the region, so things are certainly looking far better than they did even 6 months ago. Till then, even as growth picks up in Bahrain, it is at best very gradual.
If you’re looking to sell real estate in Bahrain, be sure to hire the top UK estate agents because it certainly isn’t easy to get buyers for your property under the present circumstances by yourself. Hiring the best UK estate agents would give you a better chance.