BizBahrain Magazine Sep-Oct 2017

Focus Feature | Real Estate Sector
BAHRAIN’S RESILIENT
PROPERTY SECTOR
by Reena Abraham
Retrospection, though necessary
especially when analyzing the
economic progress of a country,
is not always the most gratifying of
exercises. However, a look back into
the first half of 2017 allows a general,
if cautious, note of optimism with the
strengthening global economic outlook.
The non-oil economy in the Gulf has
gained even as oil output cuts have
translated into more subdued headline
growth. Bahrain’s performance in
this environment has continued to be
distinguished by remarkable resilience,
thanks in large part to substantial
infrastructure investments. Overall,
Bahrain’s annual economic growth rate
was 2.9% in the first quarter of 2017
in line with its performance in 2016,
the momentum supported by a record
infrastructure pipeline.
Despite a slightly rocky global
economic environment, the tentative
recovery that became evident during
the end of last year has generally
continued to gather steam. Virtually all
advanced economies are showing signs
of faster growth and most economic
indicators have proven resilient. The
intermediate economic data for the
region has remained mixed in reflection
of the conflicting forces created by
hydrocarbons sector cutbacks and
the gradual normalization of the oil
sector. In Bahrain recent months have
highlighted the strategic importance of
economic diversification, on the back of
the recurring pattern of volatility in oil
prices.
It is encouraging that the
Bahraini real estate sector has shown
considerable resilience in this lower oil
price environment. The Bahrain EDB’s
Bahrain Economic Quarterly June 2017
shows a growth in the real estate sector
of 4.5% in the first quarter of 2017.
“Recent figures demonstrate the
resilience of Bahrain’s real estate sector
and highlight the increasing demand
for housing, not only in the Kingdom,
but across the region,” said Khalid Al
Rumaihi, Chief Executive of Bahrain
Economic Development Board, while
speaking to media.
According to the quarterly
transaction data collected by the Survey
and Land Registration Bureau (SLRB), the
aggregate value of real estate deals in Q1
of 2017 was BHD290mn. This marked a
15.2% increase on the preceding quarter
and was 8.1% ahead of the first quarter of
2016. Segments of the residential market
are seeing considerable new supply
growth with the number of freehold
units rise from 2,800 in 2016 to more
than 5,000 by 2018.
12 September-October 2017