Bahrain Real Estate Market Report in This Issue Issue No

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. The sales market, however, H2 2019 H2 2018 % difference recorded a minor 3 percent decrease for both apartments and villas. Apartments for Community rent in the Muharraq Governorate recorded a significant 12.9 percent decrease when Adliya 427 450 -5.1% comparing 2018 and 2019, while apartments for rent in the Southern Governorate Busaiteen 405 450 -10% recorded a 9 percent drop. Al Juffair 540 598 -9.7%

Manama remains the most popular area when it comes to finding apartments for rent, Riffa 286 307 -6.8% dominating a 22 percent overall search percentage between July – December of 2019, 550 646 -14.9% while Saar remains the top searched area for villa rentals at 25 percent in the same Amwaj Islands timeframe. As one of the most popular areas for investing in real estate, Amwaj Islands Galali 289 338 -14.5% remains the number one searched area when it comes to both villas and apartments for Al Hidd 374 393 -4.8% sale in Bahrain. Hoora 378 389 -2.8%

Janabiya 433 450 -3.8%

Mahooz 479 500 -4.2%

Manama 454 540 -15.9%

9 #PFTRENDSBH #PFTRENDSBH 10 Apartments for rent: Median Annual Rental Price Villas for rent: Median Annual Rental Price

PROPERTY TRENDS Community H2 2019 H2 2018 % difference Community H2 2019 H2 2018 % difference

Reef Island 900 955 -5.8% Budaiya 725 875 -17.1%

Saar 429 475 -9.7% Busaiteen 886 992 -10.7%

Sanabis 486 550 -11.6% Durrat Al Bahrain 1,455 1,517 - 4.1%

Seef 590 650 -9.2% Hamala 1,378 1,335 3.2%

Tubli 341 367 -7.1% Al Hidd 901 909 -0.9%

Um Al Hasam 454 500 -9.2% Janabiya 1,000 1,092 -8.4%

424 442 - 4.1% Zinj Jannusan 1,105 971 13.8%

Mahooz 1,000 1,031 -3%

PROPERTIES FOR RENT Saar 980 1,075 -8.8%

VILLAS Sanad 650 650 0%

Tubli 1,000 1,017 -1.7%

Zinj 958 975 -1.7% The villa rental market also witnessed a price shift between July-December 2019, but the changes have not been as dramatic as those in the apartment market. The number of apartments available surpasses the amount of villas available for rent, which is why price fluctuations have been steadier. PROPERTIES FOR SALE Some areas, such as Hamala, registered an increase in rents from BHD1,335 to APARTMENTS BHD1,378 between July-December 2019, mainly due to the addition of new and large homes which come with a higher price tag. This may have increased the average price As Bahrain continues to transition into a sales market, thanks in part to the regulations for the area. The same could be said for Jannusan, an area which recorded an increase put forth by RERA to regulate both prices and sales processes in the country, we can see in rents from BH971 to BHD1,105 in the same timeframe. that prices are undergoing a shift. There was a decrease in prices recorded for all major areas offering apartments for sale between July-December 2019. Villas for rent: Median Annual Rental Price Bahrain Bay and Marassi Al Bahrain still offer some of the highest priced apartments H2 2019 H2 2018 % difference Community for sale, but both recorded a decrease in price, from BHD1,383 per sqm to BHD1,366 Adliya 973 1,094 -11.1% per sqm and from BHD1,152 per sqm to BHD1,140 per sqm respectively, in the same

Al Jasra 1,330 1,413 -5.9% timeframe. The highest deficit was recorded in Busaiteen, which saw prices decrease from BHD737 per sqm to BHD638 per sqm between July-December 2019. This price 1,238 -4.3% Al Juffair 1,185 reduction is most likely to keep investors interested as other apartment projects become Riffa 1,095 1,183 -7.4% ready for handover.

Amwaj Islands 1,230 1,317 -6.6%

Barbar 821 835 -1.7%

11 #PFTRENDSBH #PFTRENDSBH 12 Apartments for sale: Median Sales Price Per Sqm Villas for sale: Median Sales Price Per Sqm

PROPERTY TRENDS H2 2019 H2 2018 % difference Community H2 2019 H2 2018 % difference Community 497 463 7.3% Amwaj Islands 665 726 -8.4% A'ali

522 543 -3.9% Bahrain Bay 1,366 1,383 -1.2% Al Muharraq

617 626 -1.4% Busaiteen 638 737 -13.4% Al Riffa

Dilmunia Island 692 715 -3.2% Amwaj Islands 694 807 -14%

547 575 -4.9% Durrat Al Bahrain 877 947 -7.4% Bu Quwah

678 629 7.8% Al Hidd 491 517 -5.0% Busaiteen

439 507 -13.4% Hoora 735 777 -5.4% Durrat Al Bahrain

670 618 8.4% Manama 707 743 -4.8% Galali

442 466 -5.2% Marassi Al Bahrain 1,140 1,152 -1% Hamad Town

594 563 5.5% Reef Island 996 1,053 -5.4% Janabiya

549 573 -4.2% Saar 514 519 -1% Saar

541 475 13.9% Sanabis 611 663 -7.9% Sadad

496 517 - 4.1% Seef 863 920 -6.2% Shakhura

Tubli 556 542 2.6%

PROPERTIES FOR SALE VILLAS

The fact that villas for sale in Bahrain are a rarity makes the price trends they follow more volatile when compared to apartments for sale. Unlike the apartment sale market, there have been quite a few changes recorded in price for villas for sale. Areas such as Sadad, Janabiya and Busaiteen have all recorded increases in price, with the most significant increase recorded in Sadad, which saw prices jump from BHD475 per sqm to BHD541 per sqm between July-December 2019. This is most likely due to the fact that a number of new developments have been introduced, which hiked up the overall price per sqm in Sadad.

13 #PFTRENDSBH #PFTRENDSBH 14 LONG TERM PRICE

PROPERTY TRENDS TRENDS

CAPITAL GOVERNORATE CAPITAL GOVERNORATE RENT SALE

After struggling to find a stable price pattern over the past few years, we can see that villa Due to the fact that there aren’t that many villas in the Capital Governorate, there are no rents have finally stabilised starting from April 2019. This is most likely due to the fact stable patterns when it comes to pricing. As apartments are much more popular in the that there are a limited number of villas available for rent. The apartment rental market area, the price trends for these units have been on more of a steady pace since 2018, with has seen some minor fluctuations in price across the years, but the price change remains minor price fluctuations throughout the years. The Capital Governorate includes some of minor. the most popular areas when it comes to finding apartments for sale, which has played a major role in their pricing strategies. This could also be due to the regulations that RERA has put forth in the last two years.

Capital Governorate − APARTMENTS & VILLAS FOR RENT − FULL PRICE IN BHD Capital Governorate − APARTMENTS & VILLAS FOR SALE − PRICE PSQFT IN BHD Apartment Villa Apartment Villa 2000 1500

1500

1000

500

0 0

Jul 17 Jul 18 Jul 19 Jul 17 Jul 18 Jul 19 Dec 16Jan 17Feb 17Mar 17Apr 17May 17Jun 17 Aug 17Sep 17Oct 17Nov 17Dec 17Jan 18Feb 18Mar 18Apr 18May 18Jun 18 Aug 18Sep 18Oct 18Nov 18Dec 18Jan 19Feb 19Mar 19Apr 19May 19Jun 19 Aug 19Sep 19Oct 19Nov 19Dec 19Jan 20 Dec 16Jan 17Feb 17Mar 17Apr 17May 17Jun 17 Aug 17Sep 17Oct 17Nov 17Dec 17Jan 18Feb 18Mar 18Apr 18May 18Jun 18 Aug 18Sep 18Oct 18Nov 18Dec 18Jan 19Feb 19Mar 19Apr 19May 19Jun 19 Aug 19Sep 19Oct 19Nov 19Dec 19Jan 20

15 #PFTRENDSBH #PFTRENDSBH 16 LONG TERM PRICE

PROPERTY TRENDS TRENDS

MUHARRAQ GOVERNORATE MUHARRAQ GOVERNORATE RENT SALE

Heavy stock in areas such as Amwaj Island and Dilmunia Island has played a part in The sheer availability of villas for sale in Muharraq Governorate has played a vital role creating the price trends over the past few years for the Muharraq Governorate. As more in the pricing trends over the past few years. We can see fluctuating prices for villas for properties become affordable in those two main areas, the entire pricing strategy for sale, but we can also see that these changes have somewhat been less significant over the Governorate shifts, which is what we can see for both villas and apartments when the last 18 months, which is when RERA initiated its regulations for the sales market. The comparing prices in 2017, 2018 and 2019. However, changes in apartment rents have apartment sales market has been on more of a steady price trend across the past three been less turbulent than those of villas, as more apartment rentals are available as a years, but prices remain at their lowest since 2017. whole.

Muharraq Governorate − APARTMENTS & VILLAS FOR RENT − FULL PRICE IN BHD Muharraq Governorate − APARTMENTS & VILLAS FOR SALE − PRICE PSQFT IN BHD Apartment Villa Apartment Villa 2000 1500

1500

1000

500

0 0

17 #PFTRENDSBH #PFTRENDSBH 18 LONG TERM PRICE

PROPERTY TRENDS TRENDS

NORTHERN GOVERNORATE NORTHERN GOVERNORATE RENT SALE

Properties for rent in the Northern Governorate have always been very popular with both Despite a spike in prices over the summer of 2019, prices of properties for sale in the locals and residents. However, the area is mostly known for its high number of villas, Northern Governorate have remained somewhat steady, with only minor fluctuations which come with a higher price tag. Prices have recorded a decrease over the past three recorded. This is mainly due to the fact that this is one of the more established areas years, in order to entice tenants to continue with their leasing agreements, and in order to when it comes to finding properties for sale, especially when it comes to villas. continue attracting interest. Apartments for rent in the Northern Governorate have been on a steadier price trend, especially over the past two years.

Northern Governorate − APARTMENTS & VILLAS FOR RENT − FULL PRICE IN BHD Northern Governorate − APARTMENTS & VILLAS FOR SALE − PRICE PSQFT IN BHD Apartment Villa Apartment Villa 2000 1500

1500

1000

500

0 0

19 #PFTRENDSBH #PFTRENDSBH 20 LONG TERM PRICE

PROPERTY TRENDS TRENDS

SOUTHERN GOVERNORATE SOUTHERN GOVERNORATE RENT SALE

Prices have failed to find a steady pattern over the past three years in the Southern We can see that significant price variations were recorded in the apartment sales market Governorate, especially when it comes to the villa market, with significant price in the Southern Governorate. The addition of new properties in the area and beyond as fluctuations on record. The addition of properties in areas such as Riffa and Durrat Al well as regulation of prices from RERA seem to play a huge role in this inconsistency, Bahrain has been a key factor behind the changing prices, as the area strives to form a as prices have not formed a stable trend since 2017. Villas for sale in the Southern stable price strategy. Governorate have, on the contrary, have been able to find a more stable pricing strategy at the start of 2019, which is projected to continue.

Southern Governorate − APARTMENTS & VILLAS FOR RENT − FULL PRICE IN BHD Southern Governorate − APARTMENTS & VILLAS FOR SALE − PRICE PSQFT IN BHD

Apartment Villa Apartment Villa

2000 1500

1500

1000

500

0 0

Long-term price trends are calculated based on actual monthly prices.

21 #PFTRENDSBH #PFTRENDSBH 22 COMMUNITY SPOTLIGHT

1 MOST POPULAR AREAS - page 25

2 AFFORDABLE SNIPPETS - page 29

3 TOP 10 SEARCHED COMMUNITIES BY NUMBER OF BEDROOMS - page 30

4 WHY INVEST IN BAHRAIN TODAY - page 33

23 #PFTRENDSBH #PFTRENDSBH 24 MOST POPULAR MOST POPULAR

COMMUNITY SPOTLIGHT AREAS AREAS In order to rank the most popular places to live, we’ve listed the top communities based on the percentage of leads, listings and searches on Property Finder.

APARTMENTS FOR RENT APARTMENTS FOR SALE

Apartments for Rent − Bahrain Apartments for Sale − Bahrain 22.7% 24.1% 29% Al Juffair 23.6% 20.6% Al Juffair 19.1% 20.5% 15.4% 12.7% Manama 5.9% 22.7% Al Hidd 8.7% 9.4% 12.1% 14.1% Seef 14.7% 10.3% Amwaj Islands 21.3% 8.9% 10.4% Amwaj Islands 17.4% 13.4% Seef 15.2% 15.4% 7.2% 5.9% Al Hidd 2.9% 4.9% Reef Island 6.6% 6.6% 4.5% 5.8% Riffa 0.5% 3.1% Manama 6.9% variable 6.1% 4.3% variable 4.2% 4.6% % of Searches Saar 4.4% % of Searches 6.3% % Listings Dilmunia Island 5.4% % Listings 3.7% % Leads 2.9% % Leads 2.6% Busaiteen 1.3% 3.3% Riffa 1.4% 3.6%

reorder(Community, Index) 2.9%

2.5% reorder(Community, Index) Janabiya 0.7% 3% Saar 1.4% 3.5% 2.9% 0.8% Tubli 2.5% 1.7% Busaiteen 3.4% 1.9% 2.6% 0.9% Hoora 2.8% 1.7% Bahrain Bay 2.1% 1.2% 2.1% Reef Island 5.9% 3.7% Diyar Al Muharraq 4.2% 3.8% 1% 1.6% 2.7% Dilmunia Island 0.8% 1.4% Janabiya 0.9% 0% 10% 20% 30% 0% 5% 10% 15% 20% 25% value value

25 #PFTRENDSBH #PFTRENDSBH 26 MOST POPULAR MOST POPULAR

COMMUNITY SPOTLIGHT AREAS AREAS

VILLAS FOR RENT VILLAS FOR SALE

Villas for Rent − Bahrain Villas for Sale − Bahrain 26.3% 16.2% Saar 34.1% Saar 16.5% 25.2% 16.6% 10.7% 13.85% Amwaj Islands 10.1% Amwaj Islands 12.6% 14% 21.8% 8.4% 13.15% 2.5% 13.4% Riffa 5.1% Diyar Al Muharraq 13.6% 7.7% 7.71% 5.4% 9.4% Manama 10.7% Riffa 13.4% 5.2% 6.77% Janabiya 12.8% Hamala 3.2% 9.4% 3.69% 5% 5.87% Budaiya 1.4% Tubli 3.6% 2.3% 2% variable variable 4.9% 4.14% % of Searches % of Searches Hamala 10.9% Galali 1.2% 7.6% % Listings 0.9% % Listings 3.3% % Leads 4.14% % Leads 3.2% 7% Al Juffair 5.3% Durrat Al Bahrain 5.9% 3.2% 3.27% reorder(Community, Index) reorder(Community, Index) Durrat Al Bahrain 0.4% Sanad 3.6% 1.3% 2.7% 2.5% 2.43% Tubli 1.6% Al Hidd 1% 1.3% 0.9% 2.5% 1.98% Busaiteen 0.9% Janabiya 2.8% 2.1% 3.2% 2.2% 1.73% Al Hidd 1.2% Hamad Town 2.3% 2.1% 2.1% 2.2% 1.66% Diyar Al Muharraq 1.1% Bu Quwah 2.6% 1.1% 2%

0% 10% 20% 30% 0%5%10% 15% 20% value value

27 #PFTRENDSBH #PFTRENDSBH 28 AFFORDABLE SNIPPETS TOP-SEARCHED COMMUNITIES

COMMUNITY SPOTLIGHT BY NUMBER OF BEDROOMS

Take a look at the top-searched communities for studios, one-bedroom, Here are the top 10 most affordable areas for apartments two-bedroom, three-bedroom, four-bedroom and five-bedroom properties and the top 5 most affordable areas for villas in Bahrain in Bahrain. today. Studio:

Apartments for rent (monthly rate) Al Juffair Busaiteen Amwaj Islands Al Hidd Riffa Al Manama Bu Kowarah Gudaibiya North Riffa Manama Reef Island 1 Sharqi 2 Downtown 3 Average price 4 Average price 5 Average price Average price Average price BHD 304 BHD 316 BHD 332 Seef Dilmunia Island BHD 256 BHD 292 Saar Janabiya

Salmaniya Al Burhama Gufool Tubli Exhibition 6 Average price 7 Average price 8 Average price 9 Average price 10 Road BHD 339 BHD 343 BHD 357 BHD 366 Average price BHD 383 One-bedroom:

Al Juffair Reef Island

Villas for rent (monthly rate) Amwaj Islands Dilmunia Island Manama Busaiteen

Ghuraifa Al Burhama Bu Kowarah Al Sherooq Marassi Al Seef Al Hidd 1 Average price 2 Average price 3 Average price 4 Average price 5 Bahrain BHD 656 BHD 683 BHD 690 BHD 710 Average price Saar Janabiya BHD 740

The data is based on median advertised prices on propertyfinder.bh and may not reflect the actual transacted price.

29 #PFTRENDSBH #PFTRENDSBH 30 TOP-SEARCHED COMMUNITIES

COMMUNITY SPOTLIGHT BY NUMBER OF BEDROOMS

Two-bedroom: Four-bedroom:

Manama Reef Island Saar Riffa Al Juffair Janabiya Amwaj Islands Al Jasra Amwaj Islands Al Hidd Hamala Al Juffair Seef Riffa Janabiya Diyar Al Muharraq Saar Dilmunia Island Manama Al Hidd

Three-bedroom: Five-bedroom:

Amwaj Islands Seef Saar Manama Manama Reef Island Amwaj Islands Al Jasra Al Juffair Hamala Riffa Diyar Al Muharraq Saar Al Hidd Janabiya Al Juffair Janabiya Riffa Hamala Tubli

31 #PFTRENDSBH #PFTRENDSBH 32 WHY INVEST IN COMMUNITY SPOTLIGHT BTODAHRAAY? IN The introduction of the Real Estate Regulatory Authority (Rera) has made it easier and more transparent for real estate transactions to take place The real estate sector in the Kingdom continues to boom, with BHD553 million worth of off-plan projects being licensed by Rera since its inception Bahrain’s economy is projected to grow by 2.7 percent in 2020 GDP per capita: $25,483 (nominal, 2018 est.) Bahrain was rated as one of the top countries in the Middle East in the Economic Freedom Index compiled by the Heritage Foundation and the Wall Street Journal No taxes imposed on real estate Foreigners are allowed to practise and own business at a rate of 100 percent Freedom to repatriate and transfer profits and capitals Freedom to import and export local and foreign currencies Introduction of high-end developments, such as Al Naseem (worth $500 million) and the Hasabi development (worth $1.1 billion), and many more in the real estate market For everything that’s yet to come 2 Bedrooms Find

DEMAND HOTSPOTS CURRENT POPULATION

VILLAS 1. SAAR 2. AMWAJ ISLANDS 3. AL RIFFA 1,667,740M (2019)

APARTMENTS AVERAGE GROSS % 1.AL JUFFAIR RENTAL YIELD 7(2017) 2. AMWAJ ISLANDS 3. SEEF

https://www.bahrain.bh https://www.globalpropertyguide.com https://www.rera.gov.bh https://www.ameinfo.com https://www.mofne.gov.bh https://www.numbeo.com #PFTRENDS Where life moves https://www.heritage.org 137

33 #PFTRENDSBH #PFTRENDSBH 34 CONTRIBUTORS

1 AN AGENT’S GUIDE TO SUCCESS - page 37

2 BEST PRACTICES FOR MARKETING YOUR PROPERTY- page 38

3 BAHRAIN REAL ESTATE ASSOCIATION SEEKS TO

PROFESSIONALISE SECTOR- page 39

4 WHAT IS RERA’S MANDATE IN BAHRAIN- page 40

35 #PFTRENDSBH #PFTRENDSBH 36 AN AGENT’S Gary Barnes BEST PRACTICES Anil Kunnikal Managing Director Business Development CONTRIBUTORS GaryB Real Estate Manager GUIDE TO FOR MARKETING Paragon Real Estate W.L.L SUCCESS YOUR PROPERTY

Why would I choose this topic, you might ask? Creating a marketing strategy for your property Because we really want to show you that we care for « Trust, customer satisfaction in Bahrain is vital. It can be shared online and « Good photography, virtual both customers and landlords. and good aftercare are crucial anywhere your community has a digital footprint. tours and floor plans are Creation and sharing on social media and One of the main aims of agents and landlords is to clinch deals and get repeat publishing content in order to acquire customers some tips to make your to promote cooperation with clients. This enables business. » is an additional sales tactic that you should utilise. property stand out from repeat business, referrals and happy customers and You can also have it set up so that the link to your property owners. A definite win-win situation for resident blog is auto-shared on a variety of social the rest. » everyone. media platforms. It gives you a reliable place to create and share meaningful results. 1. Get to know your clients personally 4. Look after customers the last thing a person wants to do. If you have extra time to invest, there are platform- One thing common between your clients and A majority of your clients spend a lot of money specific ways to share the content that can add 4. Resident referrals: landlords is their decision to work with you. This to rent a home, office or business premises. traction within that specific space. makes it imperative to know the individual qualities Remember that they are here to build a new life or One of the most effective forms of marketing in of each person you work with in order to do your career in Bahrain. The service that you provide as a Here are a few best practices that will help market the past was word of mouth and that will be a best work and increase their satisfaction with your real estate agent is very important and personal. So, your property: continuing trend. This is where resident referrals business. don’t just make it about closing the deal and getting come in. When you give happy residents an a commission. Render good aftercare as well. 1. Prioritise good photography: incentive for trying to turn their friends and family 2. Build trust with customers and landlords Always be available with help and sound advice. into their neighbours, you will be successful. Remember your clients may be possibly new in Professional photos are a must for any property. The service that you provide as a real estate agent Bahrain and you are their main link in the real estate We live in the world of social media where whoever is very important and very personal. This is why market. Positive feedback from your customers is has the best photos wins the most likes or in this trust plays a big part in an agent-client-landlord one of the most useful resources to improve your case – leads. In a recent study, it was found that relationship, as does being attentive to a client’s level of service, enhance your reputation and get a a high volume of real estate agents used aerial budget, goals and dreams. steady flow of clients and referrals. photography 3.5x more than others and the listing price was higher for homes highlighted with drone 3. Look after landlords 5. Customer satisfaction photography.

We are all trying to rent or sell properties. It is We are all aware that high customer satisfaction 2. Floor plans and virtual tours: a very competitive market. We must never put is key to any company’s future success. The the customer above the landlord. The reason is satisfaction of customers and landlords guarantees This will give the prospect a way to view the simple. A customer will stay in the property only a qualitative and quantitative increase in market property from the comfort of their own home. They for one or two years, depending on their situation. share and a steady flow of deals in the future. The need to visualise what it’s going to be like in their In some cases, they stay for a shorter period than popularity of online listings, marketing and media new home and if photos are the number one way the contract’s validity. They will then leave, but the platforms means customers and landlords have to do that, then floor plans are a close number two. landlord will still have his or her property. You have strong ideas of what they are looking for when Floor plans are the second-highest recommended a chance to represent his/her property in the market searching for properties. Showcasing that you are marketing strategy to use and the floor plan page again and the opportunity to clinch another deal. doing it right will increase the flow of business to is the most visited page on websites, other than the Therefore, do not push your landlord to the absolute your agency. home page. maximum because they will never recommend you to their colleagues or friends for future business. 3. Mobile-friendly: So, take care of landlords; they are your main source of income. As a real estate agent, what you Most people look things up on their phone, so when learn from them is invaluable. Show them you care it comes to the best marketing ideas – a mobile- about their property and business alike. Quality friendly site is key. Mobile sites are faster and rank service should start and end with landlords. better on Google than non-mobile sites. Technology has made us need instant gratification, so waiting is

37 #PFTRENDSBH #PFTRENDSBH 38 BAHRAIN Ehab Almoosawi WHAT IS RERA’S Husam Alsharraf Managing Director Managing Director CONTRIBUTORS REAL ESTATE Boon Real Estate MANDATE IN Best Location Properties ASSOCIATION BAHRAIN? « The body seeks to provide SEEKS TO RERA stands for Real Estate Regulatory Authority. « It will help streamline ethical and accurate real RERA was formed with the official issuance of Royal decree 69/2017. It was built based on the vision of and license developers, estate consultancy service HRH Prince Salman Bin Hamad Bin Isa Al Khalifa, PROFESSIONALISE to the public and official the Crown Prince of the Kingdom of Bahrain. brokers, valuers and owners’ associations. » SECTOR sectors.» What is the purpose of RERA? associations. An individual or a company can obtain The main purpose of RERA is to align the real estate the licence to be a part of an owners’ association if regulations and practices in the Kingdom of Bahrain What is the Bahrain Real Estate Association? achieves and ensures justice for all clients, brokers they comply with the code of conduct set by RERA. with international real estate markets. Some of the and investors. Professional insurance indemnity is another key main aims and objectives are to increase real estate Established in 2002, the Bahrain Real Estate aspect covered by RERA. This has been applied • Establishing ethical standards and a code investments and economic growth, apply proper Association was created by a group of real estate in order to protect professional workers in case of conduct to reduce obstacles through more regulations in the real estate market and protect the brokers by a decree of the Minister of Labour and of any issues raised later due to any future loss or confidence and reassurance to all parties involved in rights of citizens and investors in the market. Social Affairs No. 77 of 2002. The idea behind the damages from negligence or breach of duties. In the real estate market. In this article, we will take an overview of some of association was for it to be a stepping stone towards this case, insurance companies will compensate the the key areas that RERA plans to regulate. a better future that would guarantee wealth and • Coordination with relevant authorities regarding the damaged party on behalf of professionals. prosperity in all real estate deals in general and for ways and means of developing the real estate sector RERA will regulate all developments in the Bahrain real estate market. All developers will have to obtain real estate brokers in particular. in the Kingdom. In conclusion, the RERA will have a very positive a licence from RERA in order to develop projects impact on regulating the Bahrain real estate market • Seek to add more Bahrain citizens to real estate and sell them off-plan in a way to protect buyers In order to ensure that strategies are created and help build trust between all parties involved. and goals are met, the association has appointed brokerage and purge the market of all informal and and create trust in the market. a Board of Directors, which consists of seven unlicensed brokers. The broker licence is one of the main steps elected members which include the President, Vice • Initiating human resource development by implemented by RERA. The agency has introduced President, Administrator and Financial Controller. organising sessions to raise the bar among all real specific requirements in line with international estate dealers. Principles of the Association standards in order to become a real estate broker • Resolve disputes between real estate brokers in a in Bahrain. A few requirements include market The Association believes that the public is entitled to friendly way. knowledge and real estate experience. Brokers ethical and accurate real estate consultancy service must also learn to create a proper contract between • Stipulate that all practitioners of the profession by dealers in the real estate sector, including real the broker and seller, which will be clear and based work in official real estate offices, either individually estate brokers. The association also believes that on guidelines. They must also provide quarterly or through the formation of individual companies. integrity and transparency are essential qualities in reports on all sales transactions. This will make real the real estate business. • Coordinate with similar societies at the GCC level, estate deals clear for all parties, especially end- Arab and international countries. users. Members of the association believe that it should be a reference for the real estate sector and for all RERA will also implement the Bahrain Valuation Membership workers in the field of real estate brokerage and Standard (BVS). It has rules and guidelines derived help achieve economic growth in the field of real from the International Valuation Standard (IVS) and estate development. One of the most important goals of the current board of directors is to attract the largest number of RICS (Royal Institute of Chartered Surveyors). All members to the association in order to represent the valuers will have to apply for this licence. In order Objectives of the association largest segment of brokers and real estate agents. to avoid conflict of interest, RERA has passed a rule This will enhance the strength of the association’s that a licensed broker can’t be a valuer. It has also • Care for the interests of members and decisions with the official authorities and help it applied the grading system which grades valuers intermediary offices, and enhance the social and to become a specialised professional association. depending on their experience and education, economic position of members. The number of active members in the association ranging from A grade to D. • Seek to advance the profession of real estate has increased from 58 at the end of 2018 to 163 brokerage in a way that serves and preserves the members until mid December 2019. The RERA will also focus on streamlining owners’ rights of customers in this sector. • Seek to organise the profession in a way that

39 #PFTRENDSBH #PFTRENDSBH 40 CONSUMER SEARCHES EXPLAINED

1 TOP SEARCHED AREAS - page 43

2 TOP SEARCHED KEYWORDS - page 47

3 COMMERCIAL - page 49

4 USER BEHAVIOUR - page 53

41 #PFTRENDSBH #PFTRENDSBH 42 . .

TOP 20 SEARCHED AREAS FOR APARTMENT AND VILLA

CONSUMER SEARCHES EXPLAINED RENTALS IN BAHRAIN

There is a minor change when it comes to the most searched areas Known as one of the most family-friendly areas in Bahrain, Saar when comparing January – July 2019 and July – December 2019, has continued to top the list of top searched areas for villa rentals in with Manama still being the top searched area for apartment rentals, Bahrain, with 25 percent of searches between July – December 2019. accounting for 22 percent of searches. However, other areas such There is minor change recorded for the most popular areas for villa as Jid Ali, Sehla and Al Dair are gaining traction because they offer rental searches when compared to Q1 and Q2 of 2019, with Amwaj budget-friendly units. Islands, Manama, Janabiya and Hamala rounding up the top five spots. LOCATION LOCATION

1. Manama 11. Hoora 1. Saar 11. Busaiteen 2. Al Juffair 12. Tubli 2. Amwaj Islands 12. Barbar 3. Amwaj Islands 13. Dilmunia Island 3. Manama 13. Tubli

4. Seef 14. Galali VILLAS 4. Janabiya 14. Durrat Al Bahrain 5. Saar 15. Sanad 5. Hamala 15. Diyar Al Muharraq 6. Al Hidd 16. Isa Town 6. Al Juffair 16. Jannusan APARTMENTS 7. Reef Island 17. Jid Ali 7. Riffa 17. Galali 8. Busaiteen 18. Salmabad 8. Al Jasra 18. Sanad 9. Riffa 19. Sehla 9. Budaiya 19. Bu Quwah 10. Janabiya 20. Al Dair 10. Al Hidd 20. Isa Town

43 #PFTRENDSBH #PFTRENDSBH 44 TOP 10 SEARCHED AREAS FOR APARTMENTS AND VILLAS FOR

CONSUMER SEARCHES EXPLAINED SALE IN BAHRAIN

Amwaj Islands has surpassed Al Juffair as the top searched area when it comes to Those looking to invest in villas in Bahrain mainly tend to search in a handful of apartments for sale between July and December 2019. However, the latter is still a locations, namely Amwaj Islands, Saar and Diyar Al Muharraq. Saar has surpassed popular choice for those looking to invest in an apartment. Riffa to occupy a spot in the top three. However, Amwaj Islands remains a strong favourite, accounting for 21.8 percent of all searches for villas for sale between July – December 2019. LOCATION LOCATION 1. Amwaj Islands 6. Manama 1. Amwaj Islands 6. Hamala 2. Al Juffair 7. Dilmunia Island 2. Saar 7. Janabiya 3. Seef 8. Diyar Al Muharraq 3. Diyar Al Muharraq 8. Sanad

4. Al Hidd 9. Busaiteen VILLAS 4. Riffa 9. Hamad Town 5. Reef Island 10. Bahrain Bay 5. Durrat Al Bahrain 10. Tubli APARTMENTS

45 #PFTRENDSBH #PFTRENDSBH 46 TOP SEARCHED KEYWORDS

On propertyfinder.bh, end-users often enter keywords to narrow down their search. Using these keywords in titles will help your properties appear more frequently in searches and also help you reach those users who are looking for your properties.

CONSUMER SEARCHES EXPLAINED Here are the top-searched keywords from July to December 2019.

APARTMENTS Top keywords FOR RENT FURNISHED INCLUSIVE BALCONY NEW POOL GYM PETS ALLOWED MAID’S ROOM SEA VIEW HOUSEKEEPING

VILLAS Top keywords FOR RENT INCLUSIVE COMPOUND PETS ALLOWED PRIVATE POOL POOL GARDEN BEACH FURNISHED MODERN

APARTMENTS Top keywords FOR SALE FREEHOLD SEA VIEW FURNISHED BALCONY STUDIO 2 BEDROOM VIEW MAID’S ROOM NEW TOOLS TO HELP

VILLAS Top keywords YOU WIN MORE FOR SALE NEW CENTRAL AC BEACH FURNISHED GARDEN FREEHOLD BUSINESS SEA VIEW BALCONY COMPOUND

47 #PFTRENDSBH #PFTRENDSBH 48 .

COMMERCIAL OFFICES FOR RENT IN BAHRAIN CONSUMER SEARCHES EXPLAINED Areas with the highest number of leads for office rentals in Bahrain Total asking price for office rentals in Bahrain

Location Total contract Seef 46.3% asking price (BHD)

% Manama 23.2 Amwaj Islands 1,195 % Bahrain Bay 12 Al Janabiya 800 % Salmabad 3.4 Al Juffair 745 2.4% Hoora Manama 736 2% Al Hidd Seef 701 1.9% Riffa Jannusan 695 % Galali 1.5 Bahrain Bay 692 1.2% Sitra Budaiya 595 1.1% Al Juffair Saar 571

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Seef and Manama continue to top the list as the areas with the highest number of leads received for office rents in Bahrain, accounting for almost 70 percent of all leads Once again, Amwaj Islands commands the received between July 2019 and December 2019. As the country’s most active business highest office rents in Bahrain as the units areas, they continue to remain very much in demand. available are new and modern. The addition of new units in Al Janabiya has increased the Bahrain Bay is also gaining traction, doubling the amount of leads recorded between average price in the area between July and January–June 2019 and July-December 2019, jumping from 6.6 percent to 12 percent December 2019. as more and more buildings become available in the up-and-coming area.

49 #PFTRENDSBH #PFTRENDSBH 50 .

Top searched areas for office rentals in The essential toolkit Bahrain:

CONSUMER SEARCHES EXPLAINED for real estate

1. Seef professionals 2. Manama 3. Bahrain Bay User friendly 4. Hoora Intuitively designed to put you in control 5. Al Juffair 6. Riffa Intelligent Increased effectiveness with data based predictions and 7. Al Hidd recommendations 8. Salmabad 9. Amwaj Islands Streamlined Work smarter, not harder 10. Saar Secure The cutting edge solution for security-conscious companies Known to be the business hubs of Bahrain, Seef and Manama and newcomer Bahrain Bay stand firmly as the top three most popular areas for office rentals in the country. While demand increases in these areas, so does supply as more and more units are ready for handover, especially in Bahrain Bay which has gained popularity over the past year.

Data is from propertyfinder.bh, July– December 2019, showing the split of listings and leads by area.

51 #PFTRENDSBH USER BEHAVIOUR

When and how are consumers using our portal? Here’s what you should know to optimise your performance CONSUMER SEARCHES EXPLAINED

LEADS PER DAY OF THE WEEK LEADS PER TIME OF DAY

Leads per Day of the Week − Bahrain Leads per Time of the Day − Bahrain

Email Leads Phone Leads Whatsapp Leads Phone Leads Email Leads Whatsapp Leads

12000

9000 4000 Number of Leads Number of Leads 6000

2000

3000

Sunday Monday Tuesday Wednesday Thursday Friday Saturday 0246810 12 14 16 18 20 22 24

It’s interesting to see the patterns of how leads change based on the lead type. Phone Most phone leads come in at around midday, particularly between 11am and 12pm leads are steady throughout the week and decrease on the weekend, especially on as most end-users are typically on break. These leads begin to decrease as the day Fridays, as it is a family day and time for people to unwind. However, there is a different ends. WhatsApp and email leads are more sporadic and do not follow a consistent trend for WhatsApp Leads, which reach their peak on the weekend due to the fact that it is pattern throughout the day. Again, this is due to the convenience and effortlessness of easier to send an email or WhatsApp message than to make a phone call. communicating through those two mediums.

53 #PFTRENDSBH #PFTRENDSBH 54 WE ARE PROPERTY FINDER

1 OUR PERFORMANCE - page 57

2 OUR EVENTS - page 58

55 #PFTRENDSBH #PFTRENDSBH 56 OUR PERFORMANCE – OUR PROPERTY FINDER EVENTS WE ARE PROPERTY FINDER Our mission is to be the fastest and easiest portal for finding property, as well as the At Property Finder, our events reflect our company: they’re innovative, varied and best marketing channel for agents, brokerages and developers. regular. It’s the ideal opportunity to interact with clients, while evoking strategic topics linked to the property sector. We continue to gain traction across all performance metrics in Bahrain with the largest market share, highest number of pages per visit and the most visits per person than any other portal. MASTERCLASSES

Our Masterclasses are highly interactive trainings LEADS: that combine presentations and roundtable discussions. They take a deep dive into up-to-date We continue to generate the highest number of leads for our clients than any other information on relevant Property Finder products portal in Bahrain, which is one of the metrics we use to measure our success. and features, highlighting some of the tools that Total leads have increased : 9.2 percent from last year, when comparing July - agents can utilise to engage in the right way with December 2018 to July - December 2019 their clients and maximise their subscription with us. Each Masterclass is hosted by one of our team members and highlights the latest features and products offered on both the Manager and % PROPERTY myCRM and discusses topics such as Call Tracking, LEADS: 9.2 INCREASE FINDER WhatsApp Leads, our latest product releases and so much more.

VISITS AND SITE SESSIONS:

Sessions have also increased by 23.8 percent during the same time period, with numbers expected to increase throughout the coming year. NETWORKING EVENTS

Our networking events are held twice a year and are a great way for our clients to mingle % PROPERTY and relax, while meeting and chatting with other SESSIONS: 23.8 INCREASE FINDER industry peers. They are all about bringing people together, helping them share experiences and ideas about the market. These events are designed to help people form connections.

Source: propertyfinder.bh internal statistics tracking data. Sessions, Users & PVs: Google Analytics July - December 2019

57 #PFTRENDSBH #PFTRENDSBH 58