While the residential property market remains quite stable, average rents are expected to decrease.
It is no secret that expats have been arriving in Bahrain for years, with the plan to stay there only a year or two, and a decade later they are still there.
This is mostly attributed to an easy lifestyle, but also because of its affordability relative to other Gulf countries.
But real estate firm Cluttons’ latest Spring 2016 Property Market Outlook Report could also provide further information that will help shape future expats next property move.
According to their report, at the beginning of this year, average rents in most areas on the island stayed the same for the second consecutive quarter, taking the annual rate of change down to 4.4 percent.
That is except for Juffair, where rents rose from BD700 to BD800 per month last year, but have not changed since.
This is a stark deviation from 2015 insights, when it was predicted that rental costs would continue increase.
Cluttons also reports there has been no change to rents on island living and expat hotspot Amwaj Islands since the last quarter, but this does mean an annual change of -2.3 percent.
On average, the rents in this area have been stuck at not much more than BD700 per month.
It’s still the most popular area for expats though, with Amwaj Islands still the most searched-for location on Bahrain Property World, even if it has seen a slight fall in popularity since last year.
Villas here cost between BD1,200 and BD1,500 per month for three and four bedroom homes, in comparison to Saar, another popular spot, where similar kinds of villas go for between BD950 and BD1,200 per month.
“It is worth noting that the return of expat families to more central areas began some 18 months ago,” states the Cluttons’ report, “but this trend is now gathering momentum.”
"These areas include places such as Mahooz, which is becoming much more popular, in the Capital Governorate, following the increase in high-quality buildings such as Cebarco Tower and Segaya Views," Tom Carter, Cluttons’ Associate Director and Head of Agency adds.
Overall, alongside a decrease in budgets, Cluttons' report expects average rents may decline to by up to five percent this year, with some areas expected to remain stable.
See also:
Affordable Bahrain: An attractive option for expats