Bahrain Real Estate Market Report in This Issue Issue No
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H2 2019 TRENDSBAHRAIN REAL ESTATE MARKET REPORT IN THIS ISSUE ISSUE NO. 4 - H2 2019 01 PROPERTY TRENDS 02 COMMUNITY SPOTLIGHT 03 CONTRIBUTORS 04 CONSUMER SEARCHES EXPLAINED 05 COMMERCIAL 06 WE ARE PROPERTY FINDER « Our mission is to educate millions of property seekers about the real estate market so they DEAR READER are able to make well-informed decisions. Using our wealth of quantitative information, combined with vast data sets, we strive to create solutions and insights for all stakeholders in the market. » The real estate sector in Bahrain has been growing and maturing over the past few years. This has been able to boost end-user confidence, especially MESSAGE GROUP OPERATIONS FROM OUR DIRECTOR now that the Real Estate Regulatory Authority has taken an important role in facilitating a more transparent market. This has resulted in an increased interest in sales, with off-plan property transactions on the rise. The potential for investment in the Bahrain real estate market continues to grow as it is currently fuelled by a $32 billion infrastructure and project pipeline, which is essential to the Kingdom’s economy. A broad range of investment opportunities as well as progressive foreign ownership laws are just a couple of reasons why Bahrain holds a highly competitive position in the regional real estate market. Property Finder aims to be at the forefront of this renaissance. Our mission is to educate millions of property seekers about the real estate market so they are able to make well-informed decisions. Using our wealth of quantitative information, combined with vast data sets, we strive to create solutions and insights for all stakeholders in the market. And just like our previous reports, this issue of Trends covers the market in terms of supplying data on price trends, demand data and our contributors section, which includes articles from market leaders who continue to use Trends as a platform to voice their opinions on the industry. Therefore, if you are in the market for the long run, do not be taken in by temporary highs or lows. Do adequate due diligence, identify a developer with a credible track record and deal only with certified agents. This is a good time to invest in real estate. We hope you find this report both beneficial and enjoyable, Monsi Rabah Group Operations Director 1 #PFTRENDSBH #PFTRENDSBH 2 CONTRIBUTORS Gary Barnes Anil Kunnikal Managing Director Business Development Manager GaryB Real Estate Paragon Real Estate W.L.L Background Background Coming from an extensive sales and marketing background that Anil Kunnikal is a business development manager at Paragon includes being featured on a front-page magazine cover, winning Real Estate in Bahrain. He did his bachelors in hospitality the prestigious IMM award for business and an international management from Informatics College, Singapore, and self-started franchise are merely a drop in an ocean of proceeded to work in customer service. This eventually led to a achievements for Gary. With offices at the World Trade Centre, career with a property management company in Bahrain. Anil he is here to stand tall and make a difference to the Bahrain has a long record of successfully guiding local, national and property market. multinational clients in residential acquisitions and has extensive knowledge and experience in the Bahrain market. Takeaway Takeaway My article could be considered a very “touchy” subject but as South Africans are known for being straight to the point, this The purpose of this article is to share how marketing best time is no different. I mean no harm because I care about the practices can affect your business and the steps needed to property market. advertise products in a simple way. Ehab Almoosawi Hussam Al-Sharaf Managing Director, Boon Real Estate Managing Director Administrator, Bahrain Real Estate Best Location Properties Association; Member of National Association of Realtors (USA) WANT TO Background Background Founder and managing director of Boon Real Estate since May Hussam Al Sharaf is an accredited, RERA-licensed real estate 2016, Ehab graduated from the University of Bahrain in the broker. As the managing director of Best Location Properties, CONTRIBUTE TO field of instrumentation and control system engineering and his vision is to be the leader in the real estate brokerage also holds a Master of Science in computer-based information business. Hussam graduated from Manchester and has seven system from the University of Sunderland, UK. He has 30 years of experience in both the real estate and banking sectors. years of experience in industrial process automation. He is Under his management, Best Location Properties has grown also a board member in the Bahrain Real Estate Association, rapidly over the past five years to become one of the most PROPERTY FINDER a member of the National Association of Realtors (USA) and a professionally recognised real estate companies in Bahrain. certified real estate broker and international property specialist. He has traded in the real estate market since 1992. Takeaway Takeaway The RERA in Bahrain will guarantee more coordination between developers and buyers, thereby ensuring transparency. It will TRENDS? Following the government’s directive to diversify sources of also provide a robust, secure, transparent and sustainable real income, encourage investment in real estate and open up the estate regulatory environment that encourages investment while property market to foreign investment, the Bahrain Real Estate protecting consumer rights. Association was formed. The number of real estate offices and Email Sara* workers functioning in the sector increased after this move. The association looks forward to adding more real estate brokers to develop the profession in line with Vision 2030. The Bahrain Real Estate Association is considered as one of the most important professional associations in Bahrain. *[email protected] 3 #PFTRENDSBH #PFTRENDSBH 4 PROPERTY TRENDS 1 MARKET HIGHLIGHTS - page 7 2 PRICE ANALYSIS - page 9 3 LONG-TERM PRICE TRENDS - page 15 5 #PFTRENDSBH #PFTRENDSBH 6 MARKET PROPERTY TRENDS HIGHLIGHTS Take a look at some of the upcoming, state-of-the-art projects that are taking Bahrain to new heights. VILLAMAR HASABI Hasabi offers a waterfront lifestyle in the south of Bahrain. Villamar @ The Harbor is located in the Bahrain Financial The 1.5 million square metre development will feature two Harbour and comprises three twisting towers of 54, 52 and marinas, a dedicated retail district, an array of restaurants, 43 storeys each. The towers will include apartments and an entertainment island, as well as a number of recreational hotels. The units will be divided into five elements, namely spaces. The development will also include 981 villas and the three twisting towers, lifestyle apartments, terraced 1,500 apartments spread across three areas: Al Jouri, Al villas, terraced podium and sky villas. The technologically Jumana and Al Jiuon, offering a living experience which is advanced residential complex is spread over 35,900 square ideal for families. metres and includes a health club and spa, swimming pools, gardens and several recreational amenities, as well as a boardwalk featuring cafes, restaurants and retail spaces. THE COURTYARD Located in the heart of Seef, The Courtyard is a mixed- use development combining urban residential spaces with modern office units. The 20-storey tower features a gym along with a rooftop pool and community space on the 20th floor, as well as two floors of flexible offices and 14 floors of apartments. All the residential units will also have direct access to The Courtyard shops and dining areas through a pedestrian bridge that connects both buildings. 7 #PFTRENDSBH #PFTRENDSBH 8 Monsi Rabah PROPERTY TRENDS Group Operations Director PROPERTY TRENDS PROPERTIES FOR RENT THE CONTEXT APARTMENTS The real estate market in Bahrain has been witnessing a constant shift over the past We can see a consistent drop in prices across the apartment rental market between few years as it turns more mature and transparent. There are many factors to consider July- December 2019. More apartments are being prepared for handover, which has put when it comes to the evolution of the Bahrain market. These include the effects of the some pressure on landlords to decrease rents in order to keep interest alive. regulations introduced by RERA, increased interest in the sales market, addition of new developments, and investment coming from Saudi Arabia and more recently, Kuwait. However, while prices have been decreasing, there has been an increase in transactions, Additionally, price variations have also played a major role in some trends over the past as more people are now able to afford upgraded housing. For example, tenants who year. were in shared accommodation are now moving into studios, and those who were in studios are upgrading to one-bedroom apartments, and so on. As part of the country’s national plan, Bahrain Economic Vision 2030, strategies to enhance private sector growth and continued government investment in infrastructure, Rents in Al Juffair, one of the most popular locations to rent an apartment in Bahrain, affordable housing and human resources have all played a part in the price trends we have decreased from BHD598 to BHD540 between July- December 2019, while Amwaj are seeing today, especially considering that many residents are now looking for more Islands recorded one of the most significant decreases in price, dropping from BHD646 affordable housing in Bahrain, considering the addition of VAT. to BHD550 in the same timeframe. Units in these areas most likely had to go through a new pricing strategy in order to attract interest from tenants, especially as supply Decreasing prices were recorded across the four Governorates in 2019, affecting the continues to increase throughout the country. rental market more significantly than the sales sector. In the Capital Governorate, a decrease of 7.7 percent was recorded for apartment rents when comparing 2018 and Apartments for rent: Median Annual Rental Price 2019, and 12 percent for villa rents during the same period.