Business Monitor International


Bahrain Real Estate Report

Published 02 September 2014

  • 58 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
Bahrain Real Estate Report

BMI View: Bahrain ' s commercial real estate sector is witnessing stagnant growth as a dip in economic output, political instability and an overhanging supply of commercial space com bine to keep rental rates down. T he country has a number of large-scale commercial projects under development, including the flagship Bahrain Bay project.

A dip in economic growth over 2014 saw rental rates stagnate across much of Bahrain's commercial real estate landscape. Falling oil revenues, a contributor to overall GDP, fell as a result of declining crude prices globally, while other sectors, such as manufacturing failed to pick up the slack by showing only moderate growth.

In the office sector the market continued to feel the lingering effects of the global financial crisis, with high vacancy rates and oversupply an ongoing concern, particularly in the capital, Manama. Meanwhile, the country's flagship Bahrain Bay mixed-use development continued to suffer further delays with a number of plots remaining vacant during Q414.

The retail segment arguably holds the most-long term growth potential of the three market segments. Relatively under-developed compared with other markets in the Gulf region, the retail sector is expected to enjoy the benefits of rising levels of disposable income as well as an expanding tourism industry. Growing visitor numbers from neighbouring Saudi Arabia should prove a key factor in increasing demand for retail space in the Kingdom, especially given recently announced plans for the construction of a second road causeway between the two countries.

Bahrain's industrial real estate segment is fast expanding with a network of modern industrial parks being developed across the country as the government looks to grow the non-oil economy and capitalise on Bahrain's status as a regional trade hub. So far, demand has failed to keep pace with expanding supply, however, with the country's continued political instability undermining investor interest. However, the...

Table of Contents

BMI Industry View
7
SWOT
9
Political
11
Economic
12
Business Environment
13
Industry Forecast
14
Office
14
Table: Forecast Office Rents, 2014-2015 (USD per m2/month)
14
Table: Office Forecast Net Yield, 2012-2018 (%)
15
Retail
15
Table: Retail Forecast Rents, 2014 And 2015 (USD per m2/month)
15
Table: Retail Forecast Net Yield, 2012-2017 (%)
16
Industrial
16
Table: Industrial Forecast Rents, 2013 And 2014 (BHD per m2/month)
16
Table: Industrial Forecast Net Yield, 2012-2017 (%)
17
Macroeconomic Forecasts
18
Table: Bahrain - Economic Activity
25
Industry Risk Reward Ratings
26
Bahrain Risk/Reward Ratings
26
Rewards
26
Risks
27
Market Overview
28
Office
30
Table: Terms Of Rental Contract/Leases, H213
31
Table: Historic Rental Costs, 2012-2013 (USD per m2/month)
31
Table: Net Yields, 2012-2014 (%)
32
Retail
33
Table: Terms Of Rental Contract/Leases, H213
35
Table: Historic Rental Costs, 2012-2014 (BHD per m2/month)
35
Table: Net Yields, 2012-2013 (%)
36
Industrial
36
Table: Terms Of Rental Contract/Leases, H213
37
Table: Historic Rental Costs, 2012-2014 (USD per m2/month)
37
Table: Net Yield, 2012-2014(%)
38
Competitive Landscape
39
Company Profile
42
Abdulla Ahmed Nass Group
42
Ahmed Mansoor Al-A'ali
44
Seef Properties BSC
46
Demographic Forecast
48
Table: Bahrain's Population By Age Group, 1990-2020 ('000)
49
Table: Bahrain's Population By Age Group, 1990-2020 (% of total)
50
Table: Bahrain's Key Population Ratios, 1990-2020
51
Table: Bahrain's Rural And Urban Population, 1990-2020
51
Methodology
52
Industry Forecast Methodology
52
Sources
53
Risk/Reward Ratings Methodology
53
Table: Real Estate Risk/Reward Ratings Indicators
55
Table: Weighting Of Indicators
56

The Bahrain Real Estate Report features Business Monitor International (BMI)'s market assessment and independent forecasts of major construction projects in the residential and commercial markets, plus rental prices and yields in major cities. The report critically analyses the prospects for real estate within the broader economic and financial context - both domestic and global - via our econometrically-modelled and clearly explained banking and economic forecasts and follows this through to evaluate the implications for REITs.

BMI's Bahrain Real Estate Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the real estate industry in Bahrain.

Key Benefits

  • Benchmark BMI's independent real estate industry forecasts for Bahrain to test other views - a key input for successful budgeting and strategic business planning in the Bahraini real estate market.
  • Target business opportunities and risks in Bahrain through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI's key industry forecasts, views and trend analysis covering real estate and construction, regulatory changes, major investments and projects and significant national and multinational company developments.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the real estate sector and within the broader political, financial, economic and business environment.

Market Overview

Overview of the real estate sector, including analysis of existing/planned real estate developments and emerging industry trends in the office, industrial and commercial sectors.

Market Analysis

Features detailed city-level data and analysis on rental prices, yields, contract terms and real estate availability with separate chapters covering the office, retail and industrial sub-sectors.

Industry Forecast Scenario

Historical data series (2010-2012) and forecasts to end-2018 for the domestic real estate industry and for the local and global finance industry. Indicators include:

Real Estate: Office, retail and industrial real estate yields for all major cities (%); short-term forecasts on minimum and maximum real estate rental prices by sub-sector (US$ per square metre, and local currency per square metre)

Construction: Industry value (US$bn); contribution to GDP (%); employment (`000); real growth (%)

Economy: Economic growth (%); nominal GDP (US$bn); unemployment (%); interest rates (%); exchange rate (against US$)

Business Environment Rankings

BMI's Real Estate Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors (real estate vendors, construction companies and financial investors) in the regional real estate market.

The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data points.

Company Profiles

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses.

The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

secure
Benefit from discounts when you add multiple products to your basket
2 Products SAVE 10%
3 Products SAVE 15%
4 Products SAVE 20%
5 Products SAVE 25%
6 Products SAVE 30%
7 - 20 Products SAVE 35%
21 Products or more SAVE 40%

Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc