Bahrain Real Estate News
Bahrain in need of 16,000 new homes every year
Bahrain requires 16,000 new housing units every year during the coming years, to make up for the present shortage of homes and to meet the demand from a growing population, said CB Richard Ellis, the property services firm.
During the past few years, Bahrain has completed an average of 10,000 homes each year. Now it has a deficit of 40,000 units the CBRE report points out.
During the recent years, the total population in Bahrain has grown by 80,000 per annum, which when given a housing ratio of around five household members per unit, will create the need for 16,000 units per annum, the report said.
According to CBRE, majority of demand for housing comes from the low-income segment, inclusive or Bahraini and expatriate workers. But, the supply received by the market mostly targets high-income group.
Just as in other locations, the property sector in Bahrain has also been hit by economic downturn. Few residential projects have been shelved, while several have been put on hold or delayed, and are awaiting fresh construction contract negotiations, said Mike Williams, senior Director of Research at CBRE.
The transaction activity has literally come to a standstill at present, as mortgages are highly priced.
Posted on 11/2/2010
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