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TRENDSBAHRAIN REAL ESTATE MARKET REPORT

H2

2019

IN THIS ISSUEISSUE NO. 4 - H2 2019

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PROPERTY TRENDS

COMMUNITY SPOTLIGHT

CONTRIBUTORS

CONSUMER SEARCHES EXPLAINED

COMMERCIAL

WE ARE PROPERTY FINDER

DEAR READER

The real estate sector in Bahrain has been growing and maturing over the past few years. This has been able to boost end-user confidence, especially now that the Real Estate Regulatory Authority has taken an important role in facilitating a more transparent market. This has resulted in an increased interest in sales, with off-plan property transactions on the rise. The potential for investment in the Bahrain real estate market continues to grow as it is currently fuelled by a $32 billion infrastructure and project pipeline, which is essential to the Kingdom’s economy. A broad range of investment opportunities as well as progressive foreign ownership laws are just a couple of reasons why Bahrain holds a highly competitive position in the regional real estate market. Property Finder aims to be at the forefront of this renaissance. Our mission is to educate millions of property seekers about the real estate market so they are able to make well-informed decisions. Using our wealth of quantitative information, combined with vast data sets, we strive to create solutions and insights for all stakeholders in the market. And just like our previous reports, this issue of Trends covers the market in terms of supplying data on price trends, demand data and our contributors section, which includes articles from market leaders who continue to use Trends as a platform to voice their opinions on the industry.

Therefore, if you are in the market for the long run, do not be taken in by temporary highs or lows. Do adequate due diligence, identify a developer with a credible track record and deal only with certified agents. This is a good time to invest in real estate.

We hope you find this report both beneficial and enjoyable,

Monsi RabahGroup Operations Director

« Our mission is to educate millions of property seekers about the real estate market so they are able to make well-informed decisions. Using our wealth of quantitative information, combined with vast data sets, we strive to create solutions and insights for all stakeholders in the market. »

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CONTRIBUTORS

Gary BarnesManaging DirectorGaryB Real Estate

Ehab AlmoosawiManaging Director, Boon Real EstateAdministrator, Bahrain Real Estate Association; Member of National Association of Realtors (USA)

Anil KunnikalBusiness Development ManagerParagon Real Estate W.L.L

Hussam Al-SharafManaging Director Best Location Properties


Background

Coming from an extensive sales and marketing background that includes being featured on a front-page magazine cover, winning the prestigious IMM award for business and an international self-started franchise are merely a drop in an ocean of achievements for Gary. With offices at the World Trade Centre, he is here to stand tall and make a difference to the Bahrain property market.

Takeaway

My article could be considered a very “touchy” subject but as South Africans are known for being straight to the point, this time is no different. I mean no harm because I care about the property market.

Background

Founder and managing director of Boon Real Estate since May 2016, Ehab graduated from the University of Bahrain in the field of instrumentation and control system engineering and also holds a Master of Science in computer-based information system from the University of Sunderland, UK. He has 30 years of experience in industrial process automation. He is also a board member in the Bahrain Real Estate Association, a member of the National Association of Realtors (USA) and a certified real estate broker and international property specialist. He has traded in the real estate market since 1992.

Takeaway

Following the government’s directive to diversify sources of income, encourage investment in real estate and open up the property market to foreign investment, the Bahrain Real Estate Association was formed. The number of real estate offices and workers functioning in the sector increased after this move. The association looks forward to adding more real estate brokers to develop the profession in line with Vision 2030. The Bahrain Real Estate Association is considered as one of the most important professional associations in Bahrain.

Background

Anil Kunnikal is a business development manager at Paragon Real Estate in Bahrain. He did his bachelors in hospitality management from Informatics College, Singapore, and proceeded to work in customer service. This eventually led to a career with a property management company in Bahrain. Anil has a long record of successfully guiding local, national and multinational clients in residential acquisitions and has extensive knowledge and experience in the Bahrain market.

Takeaway

The purpose of this article is to share how marketing best practices can affect your business and the steps needed to advertise products in a simple way.

Background

Hussam Al Sharaf is an accredited, RERA-licensed real estate broker. As the managing director of Best Location Properties, his vision is to be the leader in the real estate brokerage business. Hussam graduated from Manchester and has seven years of experience in both the real estate and banking sectors. Under his management, Best Location Properties has grown rapidly over the past five years to become one of the most professionally recognised real estate companies in Bahrain.

Takeaway

The RERA in Bahrain will guarantee more coordination between developers and buyers, thereby ensuring transparency. It will also provide a robust, secure, transparent and sustainable real estate regulatory environment that encourages investment while protecting consumer rights.

WANT TO CONTRIBUTE TO PROPERTY FINDER TRENDS?

*[email protected]

Email Sara*

PROPERTY TRENDS

MARKET HIGHLIGHTS - page 7

PRICE ANALYSIS - page 9

LONG-TERM PRICE TRENDS - page 15

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MARKET HIGHLIGHTSTake a look at some of the upcoming, state-of-the-art projects that are taking Bahrain to new heights.

VILLAMAR

Villamar @ The Harbor is located in the Bahrain Financial Harbour and comprises three twisting towers of 54, 52 and 43 storeys each. The towers will include apartments and hotels. The units will be divided into five elements, namely the three twisting towers, lifestyle apartments, terraced villas, terraced podium and sky villas. The technologically advanced residential complex is spread over 35,900 square metres and includes a health club and spa, swimming pools, gardens and several recreational amenities, as well as a boardwalk featuring cafes, restaurants and retail spaces.

HASABIHasabi offers a waterfront lifestyle in the south of Bahrain. The 1.5 million square metre development will feature two marinas, a dedicated retail district, an array of restaurants, an entertainment island, as well as a number of recreational spaces. The development will also include 981 villas and 1,500 apartments spread across three areas: Al Jouri, Al Jumana and Al Jiuon, offering a living experience which is ideal for families.

THE COURTYARD

Located in the heart of Seef, The Courtyard is a mixed-use development combining urban residential spaces with modern office units. The 20-storey tower features a gym along with a rooftop pool and community space on the 20th floor, as well as two floors of flexible offices and 14 floors of apartments. All the residential units will also have direct access to The Courtyard shops and dining areas through a pedestrian bridge that connects both buildings.


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PROPERTY TRENDS

THE CONTEXT

The real estate market in Bahrain has been witnessing a constant shift over the past few years as it turns more mature and transparent. There are many factors to consider when it comes to the evolution of the Bahrain market. These include the effects of the regulations introduced by RERA, increased interest in the sales market, addition of new developments, and investment coming from Saudi Arabia and more recently, Kuwait. Additionally, price variations have also played a major role in some trends over the past year.

As part of the country’s national plan, Bahrain Economic Vision 2030, strategies to enhance private sector growth and continued government investment in infrastructure, affordable housing and human resources have all played a part in the price trends we are seeing today, especially considering that many residents are now looking for more affordable housing in Bahrain, considering the addition of VAT. Decreasing prices were recorded across the four Governorates in 2019, affecting the rental market more significantly than the sales sector. In the Capital Governorate, a decrease of 7.7 percent was recorded for apartment rents when comparing 2018 and 2019, and 12 percent for villa rents during the same period. The sales market, however, recorded a minor 3 percent decrease for both apartments and villas. Apartments for rent in the Muharraq Governorate recorded a significant 12.9 percent decrease when comparing 2018 and 2019, while apartments for rent in the Southern Governorate recorded a 9 percent drop. Manama remains the most popular area when it comes to finding apartments for rent, dominating a 22 percent overall search percentage between July – December of 2019, while Saar remains the top searched area for villa rentals at 25 percent in the same timeframe. As one of the most popular areas for investing in real estate, Amwaj Islands remains the number one searched area when it comes to both villas and apartments for sale in Bahrain.

We can see a consistent drop in prices across the apartment rental market between July- December 2019. More apartments are being prepared for handover, which has put some pressure on landlords to decrease rents in order to keep interest alive. However, while prices have been decreasing, there has been an increase in transactions, as more people are now able to afford upgraded housing. For example, tenants who were in shared accommodation are now moving into studios, and those who were in studios are upgrading to one-bedroom apartments, and so on. Rents in Al Juffair, one of the most popular locations to rent an apartment in Bahrain, have decreased from BHD598 to BHD540 between July- December 2019, while Amwaj Islands recorded one of the most significant decreases in price, dropping from BHD646 to BHD550 in the same timeframe. Units in these areas most likely had to go through a new pricing strategy in order to attract interest from tenants, especially as supply continues to increase throughout the country.

PROPERTIES FOR RENTAPARTMENTS

Apartments for rent: Median Annual Rental Price

Community H2 2019 H2 2018 % difference

Adliya 427 450 -5.1%

Busaiteen 405 450 -10%

Al Juffair 540 598 -9.7%

Riffa 286 307 -6.8%

Amwaj Islands 550 646 -14.9%

Galali 289 338 -14.5%

Al Hidd 374 393 -4.8%

Hoora 378 389 -2.8%

Janabiya 433 450 -3.8%

Mahooz 479 500 -4.2%

Manama 454 540 -15.9%

Monsi RabahGroup OperationsDirector


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Apartments for rent: Median Annual Rental Price

PROPERTIES FOR RENTVILLAS

The villa rental market also witnessed a price shift between July-December 2019, but the changes have not been as dramatic as those in the apartment market. The number of apartments available surpasses the amount of villas available for rent, which is why price fluctuations have been steadier. Some areas, such as Hamala, registered an increase in rents from BHD1,335 to BHD1,378 between July-December 2019, mainly due to the addition of new and large homes which come with a higher price tag. This may have increased the average price for the area. The same could be said for Jannusan, an area which recorded an increase in rents from BH971 to BHD1,105 in the same timeframe.


Adliya 973 1,094 -11.1%

Al Jasra 1,330 1,413 -5.9%

Al Juffair 1,185 1,238 -4.3%

Riffa 1,095 1,183 -7.4%

Amwaj Islands 1,230 1,317 -6.6%

Barbar 821 835 -1.7%


Reef Island 900 955 -5.8%

Saar 429 475 -9.7%

Sanabis 486 550 -11.6%

Seef 590 650 -9.2%

Tubli 341 367 -7.1%

Um Al Hasam 454 500 -9.2%

Zinj 424 442 -4.1%

Villas for rent: Median Annual Rental Price

Villas for rent: Median Annual Rental Price

PROPERTIES FOR SALEAPARTMENTS

As Bahrain continues to transition into a sales market, thanks in part to the regulations put forth by RERA to regulate both prices and sales processes in the country, we can see that prices are undergoing a shift. There was a decrease in prices recorded for all major areas offering apartments for sale between July-December 2019.

Bahrain Bay and Marassi Al Bahrain still offer some of the highest priced apartments for sale, but both recorded a decrease in price, from BHD1,383 per sqm to BHD1,366 per sqm and from BHD1,152 per sqm to BHD1,140 per sqm respectively, in the same timeframe. The highest deficit was recorded in Busaiteen, which saw prices decrease from BHD737 per sqm to BHD638 per sqm between July-December 2019. This price reduction is most likely to keep investors interested as other apartment projects become ready for handover.


Budaiya 725 875 -17.1%

Busaiteen 886 992 -10.7%

Durrat Al Bahrain 1,455 1,517 -4.1%

Hamala 1,378 1,335 3.2%

Al Hidd 901 909 -0.9%

Janabiya 1,000 1,092 -8.4%

Jannusan 1,105 971 13.8%

Mahooz 1,000 1,031 -3%

Saar 980 1,075 -8.8%

Sanad 650 650 0%

Tubli 1,000 1,017 -1.7%

Zinj 958 975 -1.7%


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Villas for sale: Median Sales Price Per Sqm

PROPERTIES FOR SALE VILLAS

The fact that villas for sale in Bahrain are a rarity makes the price trends they follow more volatile when compared to apartments for sale. Unlike the apartment sale market, there have been quite a few changes recorded in price for villas for sale. Areas such as Sadad, Janabiya and Busaiteen have all recorded increases in price, with the most significant increase recorded in Sadad, which saw prices jump from BHD475 per sqm to BHD541 per sqm between July-December 2019. This is most likely due to the fact that a number of new developments have been introduced, which hiked up the overall price per sqm in Sadad.

Apartments for sale: Median Sales Price Per Sqm


Amwaj Islands 665 726 -8.4%

Bahrain Bay 1,366 1,383 -1.2%

Busaiteen 638 737 -13.4%

Dilmunia Island 692 715 -3.2%

Durrat Al Bahrain 877 947 -7.4%

Al Hidd 491 517 -5.0%

Hoora 735 777 -5.4%

Manama 707 743 -4.8%

Marassi Al Bahrain 1,140 1,152 -1%

Reef Island 996 1,053 -5.4%

Saar 514 519 -1%

Sanabis 611 663 -7.9%

Seef 863 920 -6.2%

A'ali 497 463 7.3%

Al Muharraq 522 543 -3.9%

Al Riffa 617 626 -1.4%

Amwaj Islands 694 807 -14%

Bu Quwah 547 575 -4.9%

Busaiteen 678 629 7.8%

Durrat Al Bahrain 439 507 -13.4%

Galali 670 618 8.4%

Hamad Town 442 466 -5.2%

Janabiya 594 563 5.5%

Saar 549 573 -4.2%

Sadad 541 475 13.9%

Shakhura 496 517 -4.1%

Tubli 556 542 2.6%



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LONG TERM PRICE TRENDS

CAPITAL GOVERNORATERENT

CAPITAL GOVERNORATESALE

After struggling to find a stable price pattern over the past few years, we can see that villa rents have finally stabilised starting from April 2019. This is most likely due to the fact that there are a limited number of villas available for rent. The apartment rental market has seen some minor fluctuations in price across the years, but the price change remains minor.

Due to the fact that there aren’t that many villas in the Capital Governorate, there are no stable patterns when it comes to pricing. As apartments are much more popular in the area, the price trends for these units have been on more of a steady pace since 2018, with minor price fluctuations throughout the years. The Capital Governorate includes some of the most popular areas when it comes to finding apartments for sale, which has played a major role in their pricing strategies. This could also be due to the regulations that RERA has put forth in the last two years.

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MUHARRAQ GOVERNORATERENT

MUHARRAQ GOVERNORATESALE

Heavy stock in areas such as Amwaj Island and Dilmunia Island has played a part in creating the price trends over the past few years for the Muharraq Governorate. As more properties become affordable in those two main areas, the entire pricing strategy for the Governorate shifts, which is what we can see for both villas and apartments when comparing prices in 2017, 2018 and 2019. However, changes in apartment rents have been less turbulent than those of villas, as more apartment rentals are available as a whole.

The sheer availability of villas for sale in Muharraq Governorate has played a vital role in the pricing trends over the past few years. We can see fluctuating prices for villas for sale, but we can also see that these changes have somewhat been less significant over the last 18 months, which is when RERA initiated its regulations for the sales market. The apartment sales market has been on more of a steady price trend across the past three years, but prices remain at their lowest since 2017.

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Muharraq Governorate − APARTMENTS & VILLAS FOR RENT − FULL PRICE IN BHD


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NORTHERN GOVERNORATERENT

NORTHERN GOVERNORATESALE

Properties for rent in the Northern Governorate have always been very popular with both locals and residents. However, the area is mostly known for its high number of villas, which come with a higher price tag. Prices have recorded a decrease over the past three years, in order to entice tenants to continue with their leasing agreements, and in order to continue attracting interest. Apartments for rent in the Northern Governorate have been on a steadier price trend, especially over the past two years.

Despite a spike in prices over the summer of 2019, prices of properties for sale in the Northern Governorate have remained somewhat steady, with only minor fluctuations recorded. This is mainly due to the fact that this is one of the more established areas when it comes to finding properties for sale, especially when it comes to villas.

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SOUTHERN GOVERNORATERENT

SOUTHERN GOVERNORATESALE

Prices have failed to find a steady pattern over the past three years in the Southern Governorate, especially when it comes to the villa market, with significant price fluctuations on record. The addition of properties in areas such as Riffa and Durrat Al Bahrain has been a key factor behind the changing prices, as the area strives to form a stable price strategy.

We can see that significant price variations were recorded in the apartment sales market in the Southern Governorate. The addition of new properties in the area and beyond as well as regulation of prices from RERA seem to play a huge role in this inconsistency, as prices have not formed a stable trend since 2017. Villas for sale in the Southern Governorate have, on the contrary, have been able to find a more stable pricing strategy at the start of 2019, which is projected to continue.

Long-term price trends are calculated based on actual monthly prices.

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COMMUNITY SPOTLIGHT

MOST POPULAR AREAS - page 25

AFFORDABLE SNIPPETS - page 29

TOP 10 SEARCHED COMMUNITIES BY NUMBER OF BEDROOMS

- page 30

WHY INVEST IN BAHRAIN TODAY - page 33

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MOST POPULARAREASIn order to rank the most popular places to live, we’ve listed the top communities based on the percentage of leads, listings and searches on Property Finder.

APARTMENTS FOR RENT

MOST POPULARAREAS

APARTMENTS FOR SALE

Dilmunia Island

Reef Island

Hoora

Tubli

Janabiya

Busaiteen

Saar

Riffa

Al Hidd

Amwaj Islands

Seef

Manama

Al Juffair

0% 10% 20% 30%value

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variable% of Searches% Listings% Leads

Apartments for Rent − Bahrain22.7%29%20.6%

20.5%12.7%22.7%

9.4%14.1%10.3%

8.9%17.4%13.4%

7.2%2.9%4.9%

4.5% 0.5%3.1%

4.3%4.6%6.3%

3.7%2.6%3.3%

3.6%2.5%3%

3.5% 0.8%1.7%

1.9% 0.9%1.7%

1.2%5.9%3.7%

1%2.7%1.4% Janabiya

Diyar Al Muharraq

Bahrain Bay

Busaiteen

Saar

Riffa

Dilmunia Island

Manama

Reef Island

Seef

Amwaj Islands

Al Hidd

Al Juffair

0% 5% 10% 15% 20% 25%value

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Apartments for Sale − Bahrain24.1%23.6%19.1%

15.4%5.9%8.7%

12.1%14.7%21.3%

10.4%15.2%15.4%

5.9%6.6%6.6%

5.8%6.9%6.1%

4.2%4.4%5.4%

2.9%1.3%1.4%

2.9%0.7%1.4%

2.9%2.5%3.4%

2.6%2.8%2.1%

2.1%4.2%3.8%

1.6% 0.8% 0.9%


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MOST POPULARAREAS

VILLAS FOR RENT

MOST POPULARAREAS

VILLAS FOR SALE

Diyar Al Muharraq

Al Hidd

Busaiteen

Tubli

Durrat Al Bahrain

Al Juffair

Hamala

Budaiya

Janabiya

Manama

Riffa

Amwaj Islands

Saar

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Villas for Rent − Bahrain26.3%34.1%25.2%

10.7%10.1%14%

8.4%2.5%5.1%

7.7%5.4%10.7%

5.2%12.8%9.4%

5%1.4%2.3%

4.9%10.9%7.6%

3.3%3.2%5.3%

3.2% 0.4% 1.3%

2.5%1.6% 1.3%

2.5% 0.9%2.1%

2.2% 1.2%2.1%

2.2% 1.1% 1.1%

Bu Quwah

Hamad Town

Janabiya

Al Hidd

Sanad

Durrat Al Bahrain

Galali

Tubli

Hamala

Riffa

Diyar Al Muharraq

Amwaj Islands

Saar

0% 5% 10% 15% 20%value

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unity

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Villas for Sale − Bahrain16.2%16.5%16.6%

13.85%12.6%21.8%

13.15%13.4%13.6%

7.71%9.4%13.4%

6.77%3.2%3.69%

5.87%3.6%2%

4.14%1.2%0.9%

4.14%7%5.9%

3.27%3.6% 2.7%

2.43% 1% 0.9%

1.98%2.8%3.2%

1.73%2.3%2.1%

1.66%2.6%2%


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Manama Downtown Average priceBHD 292

Al Burhama Average priceBHD 683

Bu Kowarah Average priceBHD 304

Bu Kowarah Average priceBHD 690

GudaibiyaAverage priceBHD 316

Al Sherooq Average priceBHD 710

North Riffa Average priceBHD 332

Marassi Al Bahrain Average priceBHD 740

Al Burhama Average priceBHD 343

GufoolAverage priceBHD 357

TubliAverage priceBHD 366

Exhibition RoadAverage priceBHD 383

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AFFORDABLE SNIPPETS

Here are the top 10 most affordable areas for apartments and the top 5 most affordable areas for villas in Bahrain today.

The data is based on median advertised prices on propertyfinder.bh and may not reflect the actual transacted price.

Apartments for rent (monthly rate)

Villas for rent (monthly rate)

Riffa Al SharqiAverage priceBHD 256

GhuraifaAverage priceBHD 656

SalmaniyaAverage priceBHD 339

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TOP-SEARCHED COMMUNITIES BY NUMBER OF BEDROOMS

Take a look at the top-searched communities for studios, one-bedroom, two-bedroom, three-bedroom, four-bedroom and five-bedroom properties in Bahrain.

Al Juffair

Amwaj Islands

Manama

Seef

Saar

Al Juffair

Amwaj Islands

Manama

Seef

Saar

Busaiteen

Al Hidd

Reef Island

Dilmunia Island

Janabiya

Reef Island

Dilmunia Island

Busaiteen

Al Hidd

Janabiya

Studio:

One-bedroom:


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TOP-SEARCHED COMMUNITIES BY NUMBER OF BEDROOMS

Manama

Al Juffair

Amwaj Islands

Seef

Saar

Reef Island

Janabiya

Al Hidd

Riffa

Dilmunia Island

Two-bedroom:

Amwaj Islands

Manama

Al Juffair

Saar

Janabiya

Seef

Reef Island

Hamala

Al Hidd

Riffa

Three-bedroom:

Saar

Amwaj Islands

Hamala

Janabiya

Manama

Riffa

Al Jasra

Al Juffair

Diyar Al Muharraq

Al Hidd

Four-bedroom:

Saar

Amwaj Islands

Riffa

Janabiya

Hamala

Manama

Al Jasra

Diyar Al Muharraq

Al Juffair

Tubli

Five-bedroom:


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137#PFTRENDS

WHY INVEST IN

TODAY?

DEMAND HOTSPOTS CURRENT POPULATION

1. SAAR

1.AL JUFFAIR

2. AMWAJ ISLANDS3. AL RIFFA

2. AMWAJ ISLANDS3. SEEF

VILLAS

1,667,740M(2019)

APARTMENTS

BAHRAIN The introduction of the Real Estate Regulatory Authority (Rera)

has made it easier and more transparent for real estate transactions to take place

The real estate sector in the Kingdom continues to boom, with BHD553 million worth of off-plan projects being licensed by Rera since its inception

Bahrain’s economy is projected to grow by 2.7 percent in 2020

GDP per capita: $25,483 (nominal, 2018 est.)

Bahrain was rated as one of the top countries in the Middle East in the Economic Freedom Index compiled by the Heritage Foundation and the Wall Street Journal

No taxes imposed on real estate

Foreigners are allowed to practise and own business at a rate of 100 percent

Freedom to repatriate and transfer profits and capitals

Freedom to import and export local and foreign currencies

Introduction of high-end developments, such as Al Naseem (worth $500 million) and the Hasabi development (worth $1.1 billion), and many more in the real estate market

AVERAGE GROSSRENTAL YIELD 7%

(2017)

https://www.bahrain.bhhttps://www.rera.gov.bhhttps://www.mofne.gov.bhhttps://www.heritage.org

https://www.globalpropertyguide.comhttps://www.ameinfo.comhttps://www.numbeo.com

#PFTRENDSBH 34#PFTRENDSBH33

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Find2 BedroomsFor everything that’s yet to come

Where life moves


CONTRIBUTORS

AN AGENT’S GUIDE TO SUCCESS - page 37

BEST PRACTICES FOR MARKETING

YOUR PROPERTY- page 38

BAHRAIN REAL ESTATE

ASSOCIATION SEEKS TO

PROFESSIONALISE SECTOR- page 39

WHAT IS RERA’S MANDATE IN

BAHRAIN- page 40

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AN AGENT’S GUIDE TO SUCCESS

BEST PRACTICES FOR MARKETING YOUR PROPERTY

Gary BarnesManaging DirectorGaryB Real Estate

Anil KunnikalBusiness Development Manager Paragon Real Estate W.L.L

Why would I choose this topic, you might ask? Because we really want to show you that we care for both customers and landlords.

One of the main aims of agents and landlords is to promote cooperation with clients. This enables repeat business, referrals and happy customers and property owners. A definite win-win situation for everyone. 1. Get to know your clients personally

One thing common between your clients and landlords is their decision to work with you. This makes it imperative to know the individual qualities of each person you work with in order to do your best work and increase their satisfaction with your business.

2. Build trust with customers and landlords

The service that you provide as a real estate agent is very important and very personal. This is why trust plays a big part in an agent-client-landlord relationship, as does being attentive to a client’s budget, goals and dreams.

3. Look after landlords

We are all trying to rent or sell properties. It is a very competitive market. We must never put the customer above the landlord. The reason is simple. A customer will stay in the property only for one or two years, depending on their situation. In some cases, they stay for a shorter period than the contract’s validity. They will then leave, but the landlord will still have his or her property. You have a chance to represent his/her property in the market again and the opportunity to clinch another deal. Therefore, do not push your landlord to the absolute maximum because they will never recommend you to their colleagues or friends for future business. So, take care of landlords; they are your main source of income. As a real estate agent, what you learn from them is invaluable. Show them you care about their property and business alike. Quality service should start and end with landlords.

Creating a marketing strategy for your property in Bahrain is vital. It can be shared online and anywhere your community has a digital footprint. Creation and sharing on social media and publishing content in order to acquire customers is an additional sales tactic that you should utilise. You can also have it set up so that the link to your resident blog is auto-shared on a variety of social media platforms. It gives you a reliable place to create and share meaningful results.

If you have extra time to invest, there are platform-specific ways to share the content that can add traction within that specific space.

Here are a few best practices that will help market your property:

1. Prioritise good photography:

Professional photos are a must for any property. We live in the world of social media where whoever has the best photos wins the most likes or in this case – leads. In a recent study, it was found that a high volume of real estate agents used aerial photography 3.5x more than others and the listing price was higher for homes highlighted with drone photography.

2. Floor plans and virtual tours:

This will give the prospect a way to view the property from the comfort of their own home. They need to visualise what it’s going to be like in their new home and if photos are the number one way to do that, then floor plans are a close number two. Floor plans are the second-highest recommended marketing strategy to use and the floor plan page is the most visited page on websites, other than the home page.

3. Mobile-friendly:

Most people look things up on their phone, so when it comes to the best marketing ideas – a mobile-friendly site is key. Mobile sites are faster and rank better on Google than non-mobile sites. Technology has made us need instant gratification, so waiting is

4. Look after customers

A majority of your clients spend a lot of money to rent a home, office or business premises. Remember that they are here to build a new life or career in Bahrain. The service that you provide as a real estate agent is very important and personal. So, don’t just make it about closing the deal and getting a commission. Render good aftercare as well. Always be available with help and sound advice. Remember your clients may be possibly new in Bahrain and you are their main link in the real estate market. Positive feedback from your customers is one of the most useful resources to improve your level of service, enhance your reputation and get a steady flow of clients and referrals.

5. Customer satisfaction

We are all aware that high customer satisfaction is key to any company’s future success. The satisfaction of customers and landlords guarantees a qualitative and quantitative increase in market share and a steady flow of deals in the future. The popularity of online listings, marketing and media platforms means customers and landlords have strong ideas of what they are looking for when searching for properties. Showcasing that you are doing it right will increase the flow of business to your agency.

the last thing a person wants to do.

4. Resident referrals:

One of the most effective forms of marketing in the past was word of mouth and that will be a continuing trend. This is where resident referrals come in. When you give happy residents an incentive for trying to turn their friends and family into their neighbours, you will be successful.

« Trust, customer satisfaction and good aftercare are crucial to clinch deals and get repeat business. »

« Good photography, virtual tours and floor plans are some tips to make your property stand out from the rest. »


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BAHRAIN REAL ESTATE ASSOCIATION SEEKS TO PROFESSIONALISE SECTOR

Ehab AlmoosawiManaging Director Boon Real Estate

What is the Bahrain Real Estate Association?

Established in 2002, the Bahrain Real Estate Association was created by a group of real estate brokers by a decree of the Minister of Labour and Social Affairs No. 77 of 2002. The idea behind the association was for it to be a stepping stone towards a better future that would guarantee wealth and prosperity in all real estate deals in general and for real estate brokers in particular.

In order to ensure that strategies are created and goals are met, the association has appointed a Board of Directors, which consists of seven elected members which include the President, Vice President, Administrator and Financial Controller. Principles of the Association

The Association believes that the public is entitled to ethical and accurate real estate consultancy service by dealers in the real estate sector, including real estate brokers. The association also believes that integrity and transparency are essential qualities in the real estate business. Members of the association believe that it should be a reference for the real estate sector and for all workers in the field of real estate brokerage and help achieve economic growth in the field of real estate development.

Objectives of the association

• Care for the interests of members and intermediary offices, and enhance the social and economic position of members.

• Seek to advance the profession of real estate brokerage in a way that serves and preserves the rights of customers in this sector.

• Seek to organise the profession in a way that

« The body seeks to provide ethical and accurate real estate consultancy service to the public and official sectors.»

achieves and ensures justice for all clients, brokers and investors.

• Establishing ethical standards and a code of conduct to reduce obstacles through more confidence and reassurance to all parties involved in the real estate market.

• Coordination with relevant authorities regarding the ways and means of developing the real estate sector in the Kingdom.

• Seek to add more Bahrain citizens to real estate brokerage and purge the market of all informal and unlicensed brokers.

• Initiating human resource development by organising sessions to raise the bar among all real estate dealers.

• Resolve disputes between real estate brokers in a friendly way.

• Stipulate that all practitioners of the profession work in official real estate offices, either individually or through the formation of individual companies.

• Coordinate with similar societies at the GCC level, Arab and international countries.

Membership

One of the most important goals of the current board of directors is to attract the largest number of members to the association in order to represent the largest segment of brokers and real estate agents. This will enhance the strength of the association’s decisions with the official authorities and help it to become a specialised professional association. The number of active members in the association has increased from 58 at the end of 2018 to 163 members until mid December 2019.

WHAT IS RERA’S MANDATE IN BAHRAIN?

Husam AlsharrafManaging DirectorBest Location Properties

RERA stands for Real Estate Regulatory Authority. RERA was formed with the official issuance of Royal decree 69/2017. It was built based on the vision of HRH Prince Salman Bin Hamad Bin Isa Al Khalifa, the Crown Prince of the Kingdom of Bahrain.

What is the purpose of RERA?

The main purpose of RERA is to align the real estate regulations and practices in the Kingdom of Bahrain with international real estate markets. Some of the main aims and objectives are to increase real estate investments and economic growth, apply proper regulations in the real estate market and protect the rights of citizens and investors in the market.In this article, we will take an overview of some of the key areas that RERA plans to regulate.RERA will regulate all developments in the Bahrain real estate market. All developers will have to obtain a licence from RERA in order to develop projects and sell them off-plan in a way to protect buyers and create trust in the market.

The broker licence is one of the main steps implemented by RERA. The agency has introduced specific requirements in line with international standards in order to become a real estate broker in Bahrain. A few requirements include market knowledge and real estate experience. Brokers must also learn to create a proper contract between the broker and seller, which will be clear and based on guidelines. They must also provide quarterly reports on all sales transactions. This will make real estate deals clear for all parties, especially end-users.

RERA will also implement the Bahrain Valuation Standard (BVS). It has rules and guidelines derived from the International Valuation Standard (IVS) and RICS (Royal Institute of Chartered Surveyors). All valuers will have to apply for this licence. In order to avoid conflict of interest, RERA has passed a rule that a licensed broker can’t be a valuer. It has also applied the grading system which grades valuers depending on their experience and education, ranging from A grade to D.

The RERA will also focus on streamlining owners’

associations. An individual or a company can obtain the licence to be a part of an owners’ association if they comply with the code of conduct set by RERA.Professional insurance indemnity is another key aspect covered by RERA. This has been applied in order to protect professional workers in case of any issues raised later due to any future loss or damages from negligence or breach of duties. In this case, insurance companies will compensate the damaged party on behalf of professionals.

In conclusion, the RERA will have a very positive impact on regulating the Bahrain real estate market and help build trust between all parties involved.

« It will help streamline and license developers, brokers, valuers and owners’ associations. »


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CONSUMER SEARCHES EXPLAINED

TOP SEARCHED AREAS - page 43

TOP SEARCHED KEYWORDS - page 47

COMMERCIAL - page 49

USER BEHAVIOUR - page 53

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TOP 20 SEARCHED AREAS FOR APARTMENT AND VILLA RENTALS IN BAHRAIN

APA

RTM

ENTS

VIL

LAS

There is a minor change when it comes to the most searched areas when comparing January – July 2019 and July – December 2019, with Manama still being the top searched area for apartment rentals, accounting for 22 percent of searches. However, other areas such as Jid Ali, Sehla and Al Dair are gaining traction because they offer budget-friendly units.

Known as one of the most family-friendly areas in Bahrain, Saar has continued to top the list of top searched areas for villa rentals in Bahrain, with 25 percent of searches between July – December 2019. There is minor change recorded for the most popular areas for villa rental searches when compared to Q1 and Q2 of 2019, with Amwaj Islands, Manama, Janabiya and Hamala rounding up the top five spots.

LOCATION LOCATION

1. Manama2. Al Juffair3. Amwaj Islands4. Seef5. Saar6. Al Hidd7. Reef Island8. Busaiteen9. Riffa10. Janabiya

1. Saar2. Amwaj Islands3. Manama4. Janabiya5. Hamala6. Al Juffair7. Riffa8. Al Jasra9. Budaiya10. Al Hidd

11. Hoora12. Tubli13. Dilmunia Island14. Galali15. Sanad16. Isa Town17. Jid Ali18. Salmabad19. Sehla20. Al Dair

11. Busaiteen12. Barbar13. Tubli14. Durrat Al Bahrain15. Diyar Al Muharraq16. Jannusan17. Galali18. Sanad19. Bu Quwah20. Isa Town


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TOP 10 SEARCHED AREAS FOR APARTMENTS AND VILLAS FOR SALE IN BAHRAIN

APA

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Amwaj Islands has surpassed Al Juffair as the top searched area when it comes to apartments for sale between July and December 2019. However, the latter is still a popular choice for those looking to invest in an apartment.

Those looking to invest in villas in Bahrain mainly tend to search in a handful of locations, namely Amwaj Islands, Saar and Diyar Al Muharraq. Saar has surpassed Riffa to occupy a spot in the top three. However, Amwaj Islands remains a strong favourite, accounting for 21.8 percent of all searches for villas for sale between July – December 2019.

LOCATION LOCATION1. Amwaj Islands2. Al Juffair3. Seef4. Al Hidd5. Reef Island

1. Amwaj Islands2. Saar3. Diyar Al Muharraq4. Riffa5. Durrat Al Bahrain

6. Manama7. Dilmunia Island8. Diyar Al Muharraq9. Busaiteen10. Bahrain Bay

6. Hamala7. Janabiya8. Sanad9. Hamad Town10. Tubli


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TOP SEARCHED KEYWORDSOn propertyfinder.bh, end-users often enter keywords to narrow down their search.Using these keywords in titles will help your properties appear more frequently in searches and also help you reach those users who are looking for your properties. Here are the top-searched keywords from July to December 2019.

APARTMENTSFOR RENT

VILLASFOR RENT

APARTMENTSFOR SALE

VILLASFOR SALE

Top keywords

Top keywords

Top keywords

Top keywords

FURNISHED

INCLUSIVE

FREEHOLD

NEW

INCLUSIVE

COMPOUND

SEA VIEW

CENTRAL AC

NEW

POOL

PRIVATE POOL

BALCONY

FURNISHED

MAID’S ROOM

BEACH

VIEW

SEA VIEW

GYM

POOL

STUDIO

GARDEN

SEA VIEW

MAID’S ROOM

BALCONY

BALCONY

PETS ALLOWED

FURNISHED

BEACH

PETS ALLOWED

GARDEN

2 BEDROOM

FREEHOLD

NEW

FURNISHED MODERN

COMPOUND

HOUSEKEEPING


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TOOLS TO HELP YOU WIN MORE BUSINESS

.

Total asking price for office rentals in Bahrain

Amwaj Islands

Al Janabiya

Al Juffair

Manama

Seef

Jannusan

Bahrain Bay

Budaiya

Saar

1,195

800

745

736

701

695

692

595

571

Location Total contract asking price (BHD)

Seef and Manama continue to top the list as the areas with the highest number of leads received for office rents in Bahrain, accounting for almost 70 percent of all leads received between July 2019 and December 2019. As the country’s most active business areas, they continue to remain very much in demand.

Bahrain Bay is also gaining traction, doubling the amount of leads recorded between January–June 2019 and July-December 2019, jumping from 6.6 percent to 12 percent as more and more buildings become available in the up-and-coming area.

Once again, Amwaj Islands commands the highest office rents in Bahrain as the units available are new and modern. The addition of new units in Al Janabiya has increased the average price in the area between July and December 2019.

COMMERCIAL OFFICES FOR RENT IN BAHRAIN

Areas with the highest number of leads for office rentals in Bahrain

Seef

Manama

Bahrain Bay

Salmabad

Hoora

Al Hidd

Riffa

Galali

Sitra

Al Juffair

46.3%

23.2%

12%

3.4%

2.4%

2%

1.9%

1.5%

1.2%

1.1%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


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The essential toolkit for real estate professionalsUser friendlyIntuitively designed to put you in control

IntelligentIncreased effectiveness with data based predictions and recommendations

StreamlinedWork smarter, not harder

SecureThe cutting edge solution for security-conscious companies

.

1. Seef2. Manama3. Bahrain Bay4. Hoora5. Al Juffair6. Riffa7. Al Hidd8. Salmabad9. Amwaj Islands10. Saar

Top searched areas for office rentals in Bahrain:

Known to be the business hubs of Bahrain, Seef and Manama and newcomer Bahrain Bay stand firmly as the top three most popular areas for office rentals in the country. While demand increases in these areas, so does supply as more and more units are ready for handover, especially in Bahrain Bay which has gained popularity over the past year.

Data is from propertyfinder.bh, July– December 2019, showing the split of listings and leads by area.

#PFTRENDSBH51

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USER BEHAVIOUR

When and how are consumers using our portal?Here’s what you should know to optimise your performance

LEADS PER DAY OF THE WEEK

It’s interesting to see the patterns of how leads change based on the lead type. Phone leads are steady throughout the week and decrease on the weekend, especially on Fridays, as it is a family day and time for people to unwind. However, there is a different trend for WhatsApp Leads, which reach their peak on the weekend due to the fact that it is easier to send an email or WhatsApp message than to make a phone call.

LEADS PER TIME OF DAY

Most phone leads come in at around midday, particularly between 11am and 12pm as most end-users are typically on break. These leads begin to decrease as the day ends. WhatsApp and email leads are more sporadic and do not follow a consistent pattern throughout the day. Again, this is due to the convenience and effortlessness of communicating through those two mediums.

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Phone Leads Email Leads Whatsapp Leads

Leads per Time of the Day − Bahrain

3000

6000

9000

12000

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

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Email Leads Phone Leads Whatsapp Leads

Leads per Day of the Week − Bahrain


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WE ARE PROPERTY FINDER

OUR PERFORMANCE - page 57

OUR EVENTS - page 58

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OUR PERFORMANCE – PROPERTY FINDER

OUR EVENTS

Our mission is to be the fastest and easiest portal for finding property, as well as the best marketing channel for agents, brokerages and developers. We continue to gain traction across all performance metrics in Bahrain with the largest market share, highest number of pages per visit and the most visits per person than any other portal.

At Property Finder, our events reflect our company: they’re innovative, varied and regular. It’s the ideal opportunity to interact with clients, while evoking strategic topics linked to the property sector.

Our Masterclasses are highly interactive trainings that combine presentations and roundtable discussions. They take a deep dive into up-to-date information on relevant Property Finder products and features, highlighting some of the tools that agents can utilise to engage in the right way with their clients and maximise their subscription with us. Each Masterclass is hosted by one of our team members and highlights the latest features and products offered on both the Manager and myCRM and discusses topics such as Call Tracking, WhatsApp Leads, our latest product releases and so much more.

Our networking events are held twice a year and are a great way for our clients to mingleand relax, while meeting and chatting with other industry peers. They are all about bringing people together, helping them share experiences and ideas about the market. These events are designed to help people form connections.

We continue to generate the highest number of leads for our clients than any other portal in Bahrain, which is one of the metrics we use to measure our success.Total leads have increased : 9.2 percent from last year, when comparing July - December 2018 to July - December 2019

Sessions have also increased by 23.8 percent during the same time period, with numbers expected to increase throughout the coming year.

LEADS:

MASTERCLASSES

NETWORKING EVENTS

PROPERTYFINDER

PROPERTYFINDER

LEADS: 9.2% INCREASE

SESSIONS: 23.8% INCREASE

VISITS AND SITE SESSIONS:

Source: propertyfinder.bh internal statistics tracking data.Sessions, Users & PVs: Google Analytics July - December 2019


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trends - s3-ap-southeast-1.amazonaws.com€¦ · trends bahrain real estate market report h2 2019....

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