Bahrain developers face payment defaults
Bahrain’s residential developers are facing significant levels of payment defaults as purchasers either cannot or refuse to make payments due to stalled construction
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Bahrain’s residential developers are facing significant levels of payment defaults as purchasers either cannot or refuse to make payments due to stalled construction, said a recent report.
The latest DTZ Research on the Bahrain property market for the first quarter of 2010 titled ‘Property Times Bahrain Q1 2010‘ said: "Developers are now facing significant levels of default on staged payments as purchasers cannot or refuse to make payments due to stalled construction. The disappearance of this source of cash flow has led to the cancellation or delay of a large number of residential projects with many now in a state of inactivity."
DTZ country manager — Bahrain Bob Addison, who is the author of the report, stated that despite the low sales volumes, many developers have not lowered their asking prices with most cancelling all marketing efforts in the hope of market recovery, reported Emirates Business.
Meanwhile, Bahrain is likely to experience an increased office vacancy rate and low rents especially in the Central Business District area (CBD) area in the wake of a falling demand and increased supply of office stock in the country.
