Bahrain real estate transaction volumes on positive trajectory says CBRE

According to its CBRE Office Occupier Survey, 66% of companies are adopting flexible working as the new normal

Bahrain’s real estate transaction volumes are recovering, driven by stronger economic growth projects despite higher inflation, CBRE has announced. The findings are part of its Bahrain Real Estate Market Review 2022.

Discussing the residential sector, CBRE said there was a marginal increase in the average quoted mid- to high-end apartment rents between Q1 and Q2 2022, with rents increasing by 1.64% QoQ. This is said to be a continuation of the upward trajectory in rents seen since Q1 2022. Average apartment sales rates fell -3.64% QoQ during the same period, with declines seen in Bahrain’s Capital, Northern, and Southern Governorates, the report highlighted.

Freehold apartment supply is increasing, it noted, with an increase of 12.2% YoY in total supply anticipated at the end of 2022. The large increase in supply is attributable to the projected completion of key developments, including the serviced residences at the Address Beach Resort in Marassi Al Bahrain, the firm pointed out.

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“Although development activity in the office sector has slowed, surveys conducted by CBRE on flexible working, demonstrate the continued need for offices and, importantly, the requirement for adaptable spaces, that can accommodate evolving trends,” said Heather Longden, Director – Advisory & Transactions, at CBRE in Bahrain.

Commenting on the office sector, CBRE said that the delivery of new office stock has been muted for the first half of 2022, with scheduled completions to year end forecasted to increase total supply by less than 1%. The majority of tracked pipeline supply is in Bahrain Bay and Seef District, which remain the most in-demand locations by corporate occupiers, the real estate service and investment firm noted.

It also pointed out that, as per responses to its regional CBRE Office Occupier Survey, 66% of companies are adopting flexible working as the new normal, with 53% refining their workplace strategies and policies, and 48% are focusing on improving workplace wellness and sustainability. Nevertheless, a large proportion of companies expect their staff to spend much of their time at the office, in order to ensure high levels of productivity and that employees remain connected to their colleagues & clients, the company clarified.

In August 2022, Dubai was revealed to be in the global top five for residential capital value growth, while, later in the month, Emaar bought out Dubai Holding’s stake in Dubai Creek Harbour for $2.04bn.

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