Global property consultancy, Knight Frank has said Bahrain’s real estate market is unlikely to see an increase in rents or capital values in the short to medium term, despite a general improvement so far this year, Gulf News has reported. There is still a “significant overhang” of office space in the market, and aggregate demand is “unlikely to see a significant uplift in the near-term,” the firm said in its report. Despite office rents showing signs of finding a floor, at BD9 per square metre per month, prime rents are currently around 40% below their 2008 peak, it said. “What’s more, Grade A and B have seen similarly large falls. Thus, oversupply and lower corporate profits have hit all three segments fairly similarly,” the report said. However, over the next 12 months, with development activity expected to remain subdued, it is expected that the downward pressure on rents to abate,” the report said.
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