Retail remains a significant growth area in Bahrain’s property sector and is helping to fuel residential demand in certain areas across the kingdom, a report by real estate consultancy, Cluttons has found.
With retail rents remaining stable over the last six months, 78,015 sqm of new retail space is expected to be delivered across Bahrain this year, increasing to approximately 93,000 sqm in 2018 and in excess of a further 455,000 sqm by 2020.
Commenting on the Bahrain Winter 2017/18 Property Market Outlook, Faisal Durrani, head of Research at Cluttons, said: “Retail is playing a central role in helping various areas in the Kingdom realise their full potential, with residential tenants being drawn to areas that offer high levels of retail penetration.
“We have noted an upturn in the number of community retail developments in locations such as Juffair, while larger shopping malls, such as the BD 45 million ‘The Avenues’, are being seen as game changers for the Kingdom’s retail scene.”
Large-scale projects like the Gulf’s largest IKEA are helping to leverage the boom in the sector, with the project now on track to open next year and is expected to create up to 600 new jobs.
Cluttons research highlights that the depth of developers’ confidence in the sector is reflected in the fact that it is currently tracking 21 retail schemes, spread across more than 1.05 million sqm, at a total cost of more than $735m (BD277m).
All projects are due to be completed between now and the start of 2020.