Bahrain short of 75,000 homes in 2017
A "majority of the shortage" is driven by the low- and mid-income segment in Bahrain, where 85% of 2016's residential property transactions were completed by nationals
Bahrain is facing a shortage of 75,000 housing units this year, according to a recent report published by property consultancy, CBRE.
CBRE's H1 2017 Bahrain MarketView report stated that the kingdom's residential sector "has experienced an undersupply situation" for more than 25 years.
A "majority of the shortage" is in the low- and mid-income segment, the report stated.
"Current demand in 2017 based on population statistics and typical household sizes is for 290,000 units, while there are only 216,000 completed units across all property types in the market," the report continued.
"An intensive government led strategy is underway to close the supply/demand gap, with 40,000 units scheduled to be introduced under the housing plan by 2020."
Up to 85% of the real estate transactions completed in Bahrain last year were implemented by the country's nationals, with 10% completed by GCC nationals, prominently from Kuwait and Saudi Arabia, CBRE's report added, citing the kingdom's Survey and Land Registration Bureau.
Juffair is one of Bahrain's "most active districts [...] for new residential development", with numerous projects under construction and planned for completion in 2017 and 2018, a CBRE official said.
James Lynn, director of CBRE Bahrain, added: "In 2016, the micro market comprised of 2,800 freehold units, and this is expected to rise to over 5,000 units by 2018, which is almost 79% growth within a short two-year period.
"The rising cost of power and water utilities for expatriates has started to impact on key rental decisions.
"Consideration of home sizes, room layouts, and general energy-efficiency within properties, are now key factors in the home selection process, more than ever before," Lynn added.
Residential properties completed in 2017 include Bin Faqeeh's The Grand and The Tweet in Seef, and The Nest in Sanabis, in addition to Fontana Gardens by Royal Ambassador, and select Dilmunia villas that "are now being handed over", CBRE revealed.