Bahrain continues to witness growth in development and investment in the retail sector, according to new data released by global real estate consultancy firm CBRE. 

 

Total retail stock in the regional and super -regional mall category in Bahrain stood at 860,700 sq m of gross leasable area (GLA) in the first quarter of 2019, it stated.  

 

With six projects currently under construction and planned for completion in 2022, the delivery is set to increase supply by 34 per cent, further positioning the country as a regional retail destination, said the real estate expert.

 

The Bahrain Retail Q1 Snapshot report revealed these future projects will be consistently larger in scale than existing comparables. 

 

In 2019, only four per cent of supply have a GLA of between 80,000 and 120,000 sq m, while 33 per cent of pipeline stock is expected to fall into this range, it stated.

 

James Lynn, the director of strategic advisory at CBRE Bahrain, said: "Retail remains one of Bahrain’s most dynamic sectors, and despite a relatively small population, the kingdom attracts a growing number of tourists."

 

"The launch of the Bahrain Shopping Festival ‘Shop Bahrain’ five years ago demonstrated that the retail sector is an important sub-sector in the kingdom," he noted.

 

According to him, the success of larger shopping malls, such as The Avenues, is testament to the demand for larger scale retail complexes with a leisure and entertainment focus. 

 

The popularity of open retail plazas is also gaining traction, with 21 projects under this classification and another 17 in the planning and construction phase, he noted.

 

The report also shows that average rental rates for in-line units have been stable since 2015, achieving BD15.300 per sqm in 2019, down by one per cent year-on-year. 

 

"Occupancy levels in Bahrain’s shopping malls currently stand at an average of 78 per cent across all properties," said Lynn.

 

"The retail supply due to come online is anticapted to exert some downward pressue on rents over the next 12 to 18 months," he stated. 

 

"That said, the overall stable retail rents and positive government interventions have ignited developer confidence and incentivised investors to do business in the kingdom," added Lynn.-TradeArabia News Service