Non-oil infra spurs growth of Bahrain property
The kingdom is "pressing on with key infrastructure projects despite enduring a challenging economic climate", a CBRE's latest market research states
Bahrain is "pressing on with key infrastructure projects despite enduring a challenging economic climate", CBRE's Q4 2016 Bahrain MarketView report states.
Figures released by Bahrain’s Economic Development Board in Q3 2016 show that economic growth in the kingdom was led by the non-oil sector, CBRE said in a statement.
CBRE research found that development activity across the retail market (regional, sub regional and neighbourhood) is growing in the country, with rental rates at sub regional shopping malls averaging $74 (BHD28) per sqm per month for in-line stores and $31 (BHD12) per sqm per month for neighbourhood shopping centres.
Remarking on the retail sector's growth, Heather Longden, associate director at CBRE Bahrain, said: "The forefront of retail development is The Avenues, an Alshaya Group led project, at Bahrain Bay Corniche, phased to open partly in late 2017.
"The development is expected to provide 38,000sqm of total leasable retail space and an impressive range of facilities."
Meanwhile, the report found that hospitality and luxury developments in the country have gained traction following the "influx" of four- and five-star hotels in 2015, with numerous hotels and branded residences expected to be launched this year.
CBRE Bahrain MarketView found there are currently 111 hotels operating in Bahrain, with the most recent opening being the Downtown Rotana.
The launch of Wyndham Grand at Bahrain Bay, Marriott Residence Inn at Water Garden City, and The One & Only Resort in 2017 will add to this number.
Residential developments are also expected to dominate Bahraini property's performance over the next three years.
James Lynn, director of CBRE Bahrain, said: "The Bahrain Marina project is in the pipeline to be completed by 2020 which will span a large portion of the East coastline in Manama and will comprise residential, entertainment, leisure and marina facilities."