Bahrain Property Market Experiences Hangover From Years Of Over Speculation

* username: rupertbu

Property sales in Bahrain have virtually dried up and the next two years will see significant challenges for the real estate sector, according to a new report.

The prohibitive cost of mortgages has impacted on the number of real estate sales in 2009 but low transaction activity and ‘inappropriate’ products in the development pipeline could cause real issues in the Gulf state, says the report from international consultants CB Richard Ellis.

‘The rampant land speculation that took hold in 2007 and 2008 has resulted in large areas of Bahrain being effectively locked from development, at least in the short term,’ the report warns.