middle east analysis
Bahrain in ‘good shape’ but
faces ‘significant challenges’
Report praises country’s economy but identifies planning issues
Property consultancy CB Richard Ellis (CBRE) highlighted the strong economic performance of Bahrain in 2009, but called for stricter planning enforcement in real estate. According to CBRE’s Market View Q4 2009 report
on the kingdom, the Bahrain economy remained ‘in generally good shape’ during 2009, recording a small contraction of between 0.1 percent and one percent over the year. The report further added that the econ- omy is expected to ‘bounce back fairly strongly in 2010 on the back of government infrastructure expenditure across a broad range of sectors.’ It also stated that the financial sector stood up well
to ‘extremely testing global market conditions that Bahrain’s reputation as a well organised and regulated financial centre has been significantly enhanced’.
OFFICE SECTOR
The report added that top end office lease rates have fallen in all sectors by approximately 15 percent since Q4 2008. Vacancy rates have increased in areas suffer- ing from poor access and/or inadequate parking. Mike Williams, senior director, research and consul-
tancy, CBRE, said that rents have continued to fall in 2010. “There has been very little transaction activity so far in 2010 and as a result we are aware that occupiers have been able to continue to negotiate downwards this year. Consequently, there has been a further fall in rental rates in 2010.” CBRE’s report noted that tenants migrated from the
CBD (also known as the ‘Diplomatic Area’) to the Seef District. Williams added that tenant activity is driven by three key factors –parking, price and access. He commented: “The areas that are congested
Bahrain World Trade Center
during peak hours and offer inadequate parking are unpopular and space is proving difficult to let, even with rental discounts and incentives. Areas where parking and access issues are less problematic such as Seef District are proving very popular at the moment and occupancy of quality space in such preferred areas is between 85 percent and 90 percent.”
34 /
/apr-may 2010
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68