Bahrain Real Estate Report Q3 2011
Includes 3 FREE quarterly updates
Bahrain is suffering from the early 2011 bout of civil unrest and this is diminishing the effects of the state’s strength through the global financial crisis. Our latest interviews with in-country sources in Manama, Muharraq and Riffa confirm that conditions in Bahrain’s commercial real estate sector continue to suffer from massive over-development in most sub-sectors and this is compounded by the exit of companies unwilling to keep offices in the country while trouble abounds.
The future e of Bahrain’s commercial real estate market is decidedly influenced by the happiness (or unhappiness) of the population and what it chooses to do about it. It is also at the mercy of oil prices and characterised by extensive over-development.
Some of the key opportunities in the real estate market are: Local sources think that most of the country’s commercial rental rates have stabilised and will track sideways (and more likely increase slightly) through 2011. 2012 looks to bring increases of about 5% for most sub-sectors in all three cities, except for retail space in Manama and Muharraq, which seems to be having a more delayed response to the downturn.
The slow recovery may be aided by increasing oil prices – a positive consequence of the political unrest nationally and in the surrounding neighbourhood. Important for this nation that is extremely reliant on oil exports.
GCC support for the state in the form of hard cash will help it recover in the face of any internal or external physical issues. Some key risks to the current real estate market are:
The general economic environment remains subdued and we expect growth to remain sluggish well into the medium term.
The political stability of the nation is at risk and further problems will weigh extremely heavily on real estate.
Exceedingly high vacancy rates exist in the commercial real estate market. There is more than 60% of empty space for office space in Manama and industrial space in Muharraq. While development continues, these high vacancy rates cannot drop.
Bahrain is suffering from the early 2011 bout of civil unrest and this is diminishing the effects of the state’s strength through the global financial crisis. Our latest interviews with in-country sources in Manama, Muharraq and Riffa confirm that conditions in Bahrain’s commercial real estate sector continue to suffer from massive over-development in most sub-sectors and this is compounded by the exit of companies unwilling to keep offices in the country while trouble abounds.
The future e of Bahrain’s commercial real estate market is decidedly influenced by the happiness (or unhappiness) of the population and what it chooses to do about it. It is also at the mercy of oil prices and characterised by extensive over-development.
Some of the key opportunities in the real estate market are: Local sources think that most of the country’s commercial rental rates have stabilised and will track sideways (and more likely increase slightly) through 2011. 2012 looks to bring increases of about 5% for most sub-sectors in all three cities, except for retail space in Manama and Muharraq, which seems to be having a more delayed response to the downturn.
The slow recovery may be aided by increasing oil prices – a positive consequence of the political unrest nationally and in the surrounding neighbourhood. Important for this nation that is extremely reliant on oil exports.
GCC support for the state in the form of hard cash will help it recover in the face of any internal or external physical issues. Some key risks to the current real estate market are:
The general economic environment remains subdued and we expect growth to remain sluggish well into the medium term.
The political stability of the nation is at risk and further problems will weigh extremely heavily on real estate.
Exceedingly high vacancy rates exist in the commercial real estate market. There is more than 60% of empty space for office space in Manama and industrial space in Muharraq. While development continues, these high vacancy rates cannot drop.
Contents
Executive SummarySWOT Analysis
Bahrain Real Estate And Construction Industry SWOT
Bahrain Economic SWOT
Bahrain Business Environment SWOT
Real Estate Market Overview
Table: Bahrain’s Real Estate Market – Historic Rents, 2009 And 2010 (m2/month, US$)
Table: Bahrain’s Real Estate Market – Net Yields, 2010 And 2011 (%)
Table: Bahrain’s Real Estate Market – Terms Of Rental Contract/Lease, Mid-2010
Table: Bahrain’s Real Estate Market – Available (m2) And Vacant Space (%), Mid-2010
Real Estate Market Analysis
Industry Forecast Scenario
Real Estate Outlook
Table: Bahrain’s Real Estate Market – Rentals, 2010-2012 (m²/month, US$)
Table: Bahrain’s Real Estate Market – Forecast Net Yield, 2008-2015 (%)
Construction and Infrastructure Outlook
Table: Bahrain Construction And Infrastructure Industry Data, 2007-2015
Table: Bahrain Construction And Infrastructure Industry Data, 2012-2020
Macroeconomic Outlook
Table: Bahrain - Economic Activity, 2006-2015
Business Environment
Real Estate/Construction Business Environment Rating
Table: Middle East And Africa Business Environment Ratings
Bahrain’s RECBER
Project Finance Ratings: Outlook For Middle East
Table: Design And Construction Rating
Table: Commissioning And Operating Rating
Table: Overall Project Finance Rating
Bahrain’s Business Environment
Table: BMI Business And Operation Risk Ratings
Table: BMI Legal Framework Rating
Table: Labour Force Quality
Table: Middle East and Africa - Annual FDI Inflows
Table: Trade And Investment Ratings
Table: Top Export Destinations, 2001-2009
Competitive Landscape
Company Profiles
Abdulla Ahmed Nass Group (AANG)
Ahmed Mansoor Al-A’ali (AMA)
Seef Properties BSC
Tas’heelat Real Estate
BMI Methodology
How We Generate Our Industry Forecasts
Construction Industry
Bank Lending
Real Estate/Construction Business Environment Rating
Table: Weighting Of Indicators
Project Finance Ratings Indicators
Table: Design And Construction Phase
Table: Commissioning And Operating Phase – Commercial Construction
Table: Commissioning And Operating Phase – Energy And Utilities
Table: Commissioning And Operating Phase – Transport
Sources 56 Skip to top