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In Bahrain, we expect to see 40,000
residential units delivered, largely driven
by a Bahraini Ministry of Housing Social
Housing initiative to meet projected demand,
especially towards the lower-income end of
the market. We expect to see demand grow
by between five and seven percent, and
we are confident the construction sector in
Bahrain will enjoy significant momentum
as a result of well-supported mega-project
announcements and investment drives.
Despite the large amount of residential
units forecast to come onto the Gulf
market in 2015, Al Mazaya report does not
predict a supply glut. Instead, and perhaps
controversially, we expect declining oil
prices to temper developers’ enthusiasm
to complete projects on schedule,
delaying completion of final phases until
prices and lease rate have strengthened.
As a result, we do not predict the
occurrence of real estate bubbles similar
to those we have seen in the recent
past. Supply will naturally realign itself to
a level at which the prospect of meeting
demand is, in most cases, realistic.
Mazaya Monthly Real Estate Report -
Week 2 - APRIL 2015