Bahrain Real Estate Report

Published 29 October 2014

  • 66 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...

BMI Industry View
7
SWOT
9
Political
11
Economic
12
Business Environment
13
Industry Forecast
14
Office
15
Table: Forecast Office Rents, 2015-2016 (USD per sqm/month)
16
Table: Office Forecast Net Yield, 2012-2018 (%)
16
Retail
16
Table: Retail Forecast Rents, 2015-2016 (USD per sqm/month)
17
Table: Forecast Net Yield, 2012-2018 (%)
17
Industrial
17
Table: Industrial Forecast Rents, 2015-2016 (USD per sqm/month)
18
Table: Industrial Forecast Net Yield, 2012-2017 (%)
18
Construction And Infrastructure Forecast Scenario
19
Table: Construction And Infrastructure Industry Data (Bahrain 2012-2017)
19
Table: Construction And Infrastructure Industry Data (Bahrain 2018-2023)
20
Macroeconomic Forecasts
24
Economic Analysis
24
Expenditure Breakdown
27
Table: Economic Activity (Bahrain 2009-2018)
33
Industry Risk Reward Ratings
34
Middle East And Africa - Risk/Reward Index
34
Table: Middle East And Africa Real Estate Risk/Reward Index
34
Bahrain Risk/Reward Ratings
35
Table: MEA Real Estate Risk/Rewards Index
35
Rewards
35
Risks
36
Market Overview
38
Office
41
Table: Terms of Rental Contract/ Leases
42
Table: Historic Rental Costs, 2013-2014 (USD per m2/month)
42
Table: Net Yields, 2013-2014 (%)
43
Retail
44
Table: Terms Of Rental Contract/Leases, H114
45
Table: Historic Rental Costs, 2013-2014 (USD per sqm/month)
45
Table: Net Yields, 2013-2013 (%)
46
Industrial
46
Table: Terms of Rental Contract/ Leases - H114
47
Table: Historic Rental Costs, 2012-2014 (USD per sqm/month)
48
Table: Net Yield, 2013-2014(%)
48
Competitive Landscape
50
Company Profile
52
Abdulla Ahmed Nass Group
52
Ahmed Mansoor Al-A'ali
54
Seef Properties BSC
56
Demographic Forecast
58
Table: Bahrain's Population By Age Group, 1990-2020 ('000)
59
Table: Bahrain's Population By Age Group, 1990-2020 (% of total)
60
Table: Bahrain's Key Population Ratios, 1990-2020
61
Table: Bahrain's Rural And Urban Population, 1990-2020
61
Methodology
62
Industry Forecast Methodology
62
Sources
63
Risk/Reward Index Methodology
64
Table: Real Estate Risk/Reward Index Indicators
65
Table: Weighting Of Indicators
66

The Bahrain Real Estate Report features BMI Research'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.

Industry Forecasts Outlook

Historic data series (2010-2013) and forecasts to end-2019 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 (USD per square metre and local currency per square metre).
  • Construction: Industry value (USDbn); contribution to GDP (%); employment (‘000); real growth (%).
  • economy: Economic growth (%); nominal GDP (USDbn); unemployment (%); interest rates (%); exchange rate (against USD).

BMI’s Real Estate Risk Reward Index

BMI’s Risk Reward Indices provide investors (real estate vendors, construction companies and financial investors) looking for opportunities in the region with a clear country comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an indices of highest to lowest appeal to investors, with each position explained.

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.

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.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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