CBRE, the renowned international real estate consultancy services provider, has released a new report on the outlook of the retail sector in the Kingdom of Bahrain in the first quarter of 2019.
The data included in the released report showed that there are currently six regional and super regional retail projects under construction that are set to be delivered in 2022, which will cause a 34% growth in the supply of the gross leasable area from 860,000 square meters in the first quarter of 2019 to around 1,153,000 square meters. This will strengthen Bahrain’s brand as a retail destination in the region.
In his comment on the released study, James Lynn the Director of Strategic Advisory at CBRE Bahrain said that the increasing number of tourists which the Kingdom of Bahrain is attracting has caused its retail sector to be one of its most growing sectors.
Lynn added that the rental rates of retail units in Bahrain have been mostly stable since 2015, recording an average 15.3BD per square meter in 2019, while the average vacancy level is currently at 22%; on the other hand, the growing level of supply is expected to cause a drop in the retail rental rates within the next 12 – 18 months.
However, Lynn concluded, the government’s continuous efforts to improve the investment environment in Bahrain and the overall stability of the sector are expected to encourage the investors to start and do business in Bahrain.