Categorized | International

Property Market in Bahrain Struggles

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Like many other countries in the region, Bahrain is struggling with a slumping real estate sector. Political unrest has had a significant impact on the overall performance of the housing market in the country, as it has led many investors and developers to stay away.

With investors and developers removing themselves from Bahrain, the nation has experienced massive declines in both residential real estate sale prices, and also in rental rates. Rental rates are down more than twenty-five percent from last year.

The luxury housing market has taken one of the most significant hits as a result of the political situation grappling the nation. Luxury homes had previously been a hot commodity for international investors. However, as those investors begin to look elsewhere for a more stable market, Bahrain’s luxury housing market has fallen to unprecedented lows.

The commercial real estate market in Bahrain has not been immune to the decline, as it too has experienced significant decreases in sales and property values. Office rental rates have fallen to levels not seen since before the real estate boom more than five years ago. They are expected to drop further if the political situation does not improve.

With Behrain’s job market in shambles, many citizens have started to protest in the streets. The protests have led to clashes between citizens and the military. The government’s failure to adequately address the protests has not only caused many investors to stay away from the nation, but it has also led many current home owners to move to quieter, and more stable areas of the nation.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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