Crisis hits property prices in Bahrain

Property prices have fallen in Bahrain and rental rates of commercial property are also down though residential rates have remained largely stable, according to a report. Manama has not been immune to the recent downturn in the global property market with an oversupply of high-end real estate and prime office space, according to Knight Frank Middle East's Bahrain Property Highlights report.

"There is significant pent-up demand for affordable housing which is not being met and there is already an oversupply of high-end apartments with Bahrain's stock due to increase by 37 per cent over the next few years, with 5,000 units in the development pipeline," the report said.

"High-end residential rental rates have yet to drop to reflect increasing vacancy rates, whereas sales rates for freehold properties have declined by 20pc since 2009."