Oil prices to cool bahrain's property market

Oil prices are likely to impact the momentum of Bahrain's property market in the coming months.

The kingdom's economic stability has been tempered slightly by weak oil prices, which has had a knock-on effect upon office take-up and employment, both of which, in turn, have impacted demand for residential real estate.

Economic growth slowed to 4 per cent in 2014, down from 4.9 per cent in 2013, and oil prices are expected to continue undermining that recovery, says Cluttons - although rents and values are "yet to see a notable impact".

"In the current global climate, the serious challenge of oil prices remaining well below the government’s forecast is seen to be taking centre stage. With that in mind, the residential market remains at high risk of losing its momentum of growth and we expect rents to remain stable, with declines likely as we approach the end of the year and demand starts to weaken," says Head of Cluttons Bahrain and Saudi Arabia Harry Goodson-Wickes.