MANAMA — The residential market in Bahrain witnessed little change quarter-on-quarter in terms of rental rates and demand, said a report. Despite some increased vacancy in the north west of the island for popular expatriate residential compound areas, due to some annual employment contracts coming to a close and the end of the school year, occupancy levels in this area, along with Juffair, Seef District, Reef Island and Amwaj Islands remain strong, according to global property consulting firm CBRE. The new apartment towers, opening in Amwaj Islands, have witnessed strong take up levels and established areas of the development including Al Marsa Floating City and Tala Island remain popular, further boosted by improved facilities and entertainment offerings being introduced, such as the ART Rotana hotel, stated the property expert in its Q2 2015 Bahrain MarketView. "Reef Island has potentially surpassed Amwaj Islands in terms of environment and convenience and is the location of choice for business executives and young professional expatriates who are looking for waterfront lifestyle, access to the CBD and main shopping destinations," said Steve Mayes, the director of Middle East Research at CBRE Bahrain. "For those with families, the north west of the island, which offers a multitude of options for compound living, is still a popular choice and with the hangover from historic civil unrest dissipating, many tenants are recognizing the value benefits offered in the Sar, Budaiya and Janabiya locations," he noted. There is the added convenience of close proximity to schools and the King Fahad Causeway for commuters to Saudi Arabia as well as a growing community services offering, he added. According to CBRE, the new entrants in this locality include: Kazerooni Villas in Janabiya, a developer renowned for quality and providing properties at the top end of the spectrum in terms of design and finishing. Dana Homes in Hamalahas also followed suit, providing luxury offerings targeting tenants on the higher end of the income scale, it added. On the office sector, CBRE said Bahrain's commercial market remains stagnated, with limited movement quarter on quarter. While Grade A international class office developers endeavor to protect market perception by staying firm on headline rentals, new occupier take up has been limited, it stated. Established, market leading office developments that differentiate themselves with quality facilities, such as Al Moayyed Tower and WTC, are achieving comparatively high occupancies, said the CBRE in its report. “Newer stock and office developments that have failed to carve out a niche, in less popular locations, are struggling to attract occupiers. While Seef District continues to be popular, the Diplomatic Area is not a choice location for many businesses, due to access and parking issues, along with central Manama,” stated Mayes. International Grade A quoted rents continue to sit at BD7 – 8 ($18.4 to $21) per sq m and in Seef District across Grade A and B with BD5.5 – 7 ($14.4 to $18.4) per sq.m achieved. On the hospitality sector, CBRE said a surge of new projects entering the hospitality market both in the luxury and mid-range segments are providing a boost to Bahrain's economy. Although the average occupancy reported for hotels, particularly in the five star bracket is modest, the development in this area shows no sign of slowing. “This year, The Four Seasons at the heart of Bahrain Bay and the ART Rotana at the Amwaj Islands have both opened their doors in the Kingdom, in time for the Formula One race season. Ibis Hotel Sanabis, the first of its kind budget mid-range hotel chain to open in Bahrain has also entered the scene taking advantage of the limited offerings in Bahrain for reasonable, affordable accommodation that meets international standards,” stated Mayes. On the industrial scenario, CBRE said the demand for high specification industrial and storage facilities is driving development in this sector. Purpose built facilities, which provide better provisioned units and services which add value to occupiers operations and reduce capital expenditure are raising the bar for this sector. Investment Gateway-Bahrain by Manara Developments; a master planned project located in Hidd will offer light industrial, commercial showroom and low rise office buildings with ground floor retail with opportunity for non-Bahraini entities to purchase and encouraging FDI to the Kingdom. The project is set for completion in early 2016 and a majority of the plots offered for sale are reportedly already sold. Mazaya Holdings announced the completion of Mazaya Logistics Project at Bahrain Investment Wharf in Hidd, with a plot area of 27,605 sq.m; a multi purpose facility with flexible offering to suit various business requirements from 250 sq.m to 15,250 sq.m modular units. — Agencies
