MANAMA: Capital values over the low-end apartments in Bahrain continued to stay static in Q4-2020 while other apartment market segments witnessed a marginal price correction in comparison with the earlier quarter, according to the latest analysis by Savills.
The international real estate adviser has provided its market highlights report on the kingdom’s property sector which was also provided during the review period, capital values across high-end apartments fell by 1.3 percent in comparison with Q3-2020 and 7pc with Q4-2019.
How so ever, values over high-end villa projects continued to stay stable in comparison with the last quarter while costs across mid-end villas fell by 3.2pc year-on-year.
Rental costs across the low-end and mid-end villa developments continued largely static in comparison with the last quarter.
The report quotes Savills Bahrain associate director and head of professional services Hashim Kadhem as saying, “We have found a disparity between prospective tenants’ offers and those being accepted by landlords. We expect this trend to continue for the near future while the supply pipeline steadily increases.”
On the subject of commercial real estate, the Savills report notes capital values in Bahrain continued to be static in Q4-2020 in comparison with the last quarter, which witnessed a marginal fall.
Offices in the high-end segment recorded no cost changes over the last six months.
Costs across projects in the low-end segment also remained static on a quarterly and on year comparison.
In terms of the rental market, an increase in employees returning to offices was witnessed during the last quarter of 2020.
As a result, rental values last mainly stable in Q4 2020 after three consecutive quarters of fall, provided in the report.
The Real Estate Regulatory Authority and the Survey and Land Registration Bureau reported the previous month that Bahrain witnessed a fall of 11pc in the volume of real estate deals for 2020, while the Economic Development Board said foreign direct investment into Bahrain remained strong reaching BD330 million during 2020.
“As the vaccination drive gathers momentum across Bahrain, the comfort levels in returning to the office may be sooner than expected,” said Mr. Kadhem.