In the wake of the general economic recession due to falling oil prices, real estate specialists in the Kingdom of Bahrain expect commercial real estate prices to continue to decline during 2016 unless oil prices recover and return to rise during the second half of this year.
The impact of local and foreign companies exiting the market Abdullah Al-Kubaisi, CEO of Bahrain's Al-Kubaisi Group, said that the exit of some local and foreign companies from the market led to a decrease in the occupancy rate of commercial properties, which contributed to the lack of demand and consequently lower prices.
Banks are reticent to finance commercial real estate Kubaisi pointed out that the reticence of banks to finance commercial real estate is one of the most important reasons that led to the decline in the trading movement in this type of real estate, unlike residential real estate, which is witnessing better activity and stability in its prices.
Residential Property Outperforms Al-Kubaisi added that residential real estate is currently driving the real estate trading movement in the market, pointing out that most real estate development companies are currently moving towards residential real estate, expecting the percentage of trading in residential real estate to increase this year based on the data of the increasing demand for residential real estate. Al-Kubaisi added that residential real estate is leading the real estate trading movement in the market currently.
Hura Sanad Real Estate Project On the other hand, Al Kubaisi Group CEO Abdullah Al Kubaisi said that the group has completed approximately 35% of the ongoing works in the Hoora Sanad real estate project, noting that the works are proceeding according to the established timetable, and that the residential units are delivered to their owners on schedule.
In addition, Al Kubaisi noted that the sales rate in the project has increased, with 28% of the project's units sold so far.
About the Al Hidd residential project, Al Kubaisi said that the group has completed the design phase of the project and will start the construction phase after completing all licenses for the project.
