View Full Version : Property Market in Bahrain starting to founder
GAGing in Bahrain
4th Jun 2009, 04:18
Gulf Daily News » Local News » Riffa Views' pledge to contractors (http://www.gulf-daily-news.com/NewsDetails.aspx?storyid=252384)
and this just a week after my recent post about Durrat Al-Bahrain...
I always knew we were a year or so behind Dubai, this proves it.
FYI, took a drive yesterday down to Areen and Sunset Hills. Idle contractors there too. Spoke with a supervisor from company XXX, who said they've been doing "busy work" for months as things have been very quiet for them; said many workers were being sent home for "vacation" and haven't come back.
Just remember, it's the same story all over the world. This is not just about Dubai and Co. We ALL just have to ride it out...
Later,
Mike.Park
4th Jun 2009, 09:08
Other important factors to consider when analyzing property prices in Dubai vs. Bahrain
- Bahrain is 15 places behind Dubai when it comes to property transparency according to the Global Real Estate Transparency Index (2008)
- Bahrain is 27 places behind Dubai with regard to levels of press freedom according to the RSF Press Freedom Index (2008)
Mike.Park
25th Jun 2009, 13:39
Lack of transparency blurs outlook for Bahrain property market
Thursday, 25 June 2009
Off plan property sales in Bahrain have virtually dried up but it is difficult to judge the impact of the global downturn on the real estate sector because of lack of transparency, it is claimed.
Separating fact from fiction is very difficult as the property market is far less transparent than in the rest of the Gulf region and transaction activity is not fully recorded or reported, according to a market overview from consultants CB Richard Ellis.
The fact that the Bahrain government has announced plans to build 43,000 homes by 2014 might indicate that the impact has been less severe but it is hard to draw conclusions, the report says.
Analysts believe that Bahrain has not experienced the same level of investor/speculator activity that has harmed the Dubai property market, for example, but sales appear to be sporadic.
Expatriates in Bahrain are typically more focused on saving than spending and are less likely to buy property. Also the variety and pricing of mortgage products in Bahrain is both small and expensive and this is a disincentive to potential buyers, says the report.
The greatest pressure for housing is in the low-income and social housing sectors, with private sector developers claiming that the Kingdom needs 80,000 social housing units by 2020.
The report also points out that the number of professional expatriates who have lost their jobs in Bahrain has not been fully quantified but has been sufficient to take much of the pressure off rental accommodation supply.
Similar to Dubai, it was this growing pressure on available rental accommodation and its pricing that was starting to drive premium property prices. Rental accommodation pressure has now eased, such accommodation is vacant and rental rates have stabilised.
Source (http://www.propertywire.com/news/middle-east/bahrain-property-market-200906253257.html)
Desert Diner
26th Jun 2009, 10:04
The big difference is that the Dubai market was driven purely by speculation/rental while the Bahrain market is driven more by Saudis seeking weekend homes.