Oil reduces Saudi demand for Bahrain worker units
The drop in oil prices has led to a slowdown in demand from Saudi-based companies for rental labour properties in Q3 2015
Demand from Saudi-based companies for rental properties in neighbouring Bahrain has fallen during the third quarter of 2015 due to the impact of cheap oil.
According to Arabian Business, CBRE's latest report, Q3 2015 Bahrain MarketView, found tenants working within the non-hydrocarbon sector in Bahrain appear to be covering this shortfall.
It said that although residential rents have remained stable across the popular expatriate areas, there has been an increase in demand particularly for housing in the northwestern areas of the country, including Sar, Budaiya and Jasra, with many compounds achieving full occupancy.
Steve Mayes, director of Middle East Research at CBRE Bahrain, said: “Perhaps predictably, there has been a decrease in the level of Saudi Arabian oil-related companies securing executive staff accommodation.
"However, tenants working within the non-hydrocarbon sector appear to be covering this shortfall up to this point."
Reef Island, located in the heart of Manama providing predominantly apartment accommodation continues to attract city workers, with the average occupancy in the region of 95%.
It said on average, Juffair rental rates have not seen a significant increase across different residential classes, however, there remains a strong demand for this area, supported by the American Naval Base housing requirements.