Weak oil prices likely to temper performance of Bahrain property
Renewed economic stability in Bahrain, which has stabilised the kingdom’s property market, has been tempered slightly by the weakness of oil prices, automatically affecting the level of office take up, job creation levels and therefore residential demand.
Cluttons’ Spring 2015 Bahrain Property Market Outlook report, indicates that rents and values across the Kingdom’s residential market are yet to see a notable impact, but low oil prices are expected to further undermine economic growth which slowed to 4% last year, from 4.9% in 2013.
“In the current global climate, the serious challenge of oil prices remaining well below the government’s forecast is seen to be taking centre stage. With that in mind, the residential market remains at high risk of losing its momentum of growth and we expect rents to remain stable, with declines likely as we approach the end of the year and demand starts to weaken,” says Head of Cluttons Bahrain and Saudi Arabia, Harry Goodson-Wickes.