Bahrain’s retail sector continues to witness development both in the destination and community mall segments, according to global property consulting firm CBRE.
Following the setting up of newly completed centers, new neighborhood retail and food and beverage offerings are now being added to the pipeline, said the second quarter Bahrain MarketView.
Galleria in Zinj, a Dadabhai project offering more than 42,000 sq m of gross leasable area, is set for completion in the fourth quarter, closely followed next year by the $6.5 million Wadi Al Sail project in Riffa, reported the Gulf Daily News (GDN.
In the city, Maalem Holding’s The Courtyard located in Seef District is also due to open in the third quarter offering three floors of dining and retail space, the report says.
“The trend appears set to continue, on the back of the drive for improved local community services,” CBRE Bahrain director for Middle East Research Steve Mayes says.
“First Bahrain has appointed key consultants as contractors to lead their $30 million planned development in Janabiya, which will also offer a courtyard style retail and food and beverage experience over three floors with 48,000 sqft of leasable space.”
The report said the second quarter has been the busiest time of the year for the hospitality sector.
“However, with Ramadan commencing in mid-June this year, the usual challenges of the holy month have come early for the industry, with projections of circa 40 to 60 per cent average occupancy for the month, which is an improvement on previous years,” said Mayes.
The commercial office market remains stagnated, finds the report, with limited movement quarter on quarter.
While Grade A international class office developers endeavor to protect market perception by staying firm on headline rentals, new occupier take up has been limited.
There has been little change quarter on quarter, in the residential rental market, in terms of rental rates and demand.
Despite some increased vacancy in the northwest of the island for popular expatriate residential compound areas, due to some annual employment contracts coming to a close and the end of the school year, occupancy levels in this area, along with Juffair, Seef District, Reef Island and Amwaj Islands remain strong.
A surge of new projects entering the hospitality market both in the luxury and mid-range segments are providing a boost to Bahrain’s economy.
Although the average occupancy reported for hotels, particularly in the five-star bracket is modest, the development in this area shows no sign of slowing.
Demand for high specification industrial and storage facilities is driving development in this sector.
Purpose-built facilities, which provide better provisioned units and services which add value to occupiers operations and reduce capital expenditure are raising the bar for the sector.
Gulf Daily News
13 July
