Bahrain is struggling to fill its office spaces while new buildings keep adding more supply. Many businesses are not looking for extra space, and new companies are not coming in large numbers. This creates a big problem for the office rental market.
Right now, Bahrain has about 1.38 million square meters of office space. However, demand remains weak. The country will soon get even more office buildings, making it harder to fill the empty spaces.
The Future Generation Tower in Bahrain Bay will open this year, adding 40,000 square meters of space. Another big project, Onyx Skyview, will bring 40 new offices by early 2027. These additions will make it harder for older office buildings to stay competitive. As a result, rents will continue to drop.
Bahrain’s office space struggles continue as big businesses, especially banks, reduce their space. Instead of renting more offices, many companies are moving into smaller spaces to save money.
Right now, about 85% of office spaces are occupied, and this number has stayed the same for two years. Other Gulf cities, like Dubai and Riyadh, have much higher occupancy rates. Dubai’s office occupancy is between 92% and 94%, while Riyadh’s best office spaces reached 98% last year.
Bahrain’s office space struggles continue as rents fall. High-end office spaces now cost BD6.4 ($17) per square meter. These prices are much lower than in Jeddah or Abu Dhabi. This makes Bahrain one of the cheapest places for office rentals in the region.
Experts believe Bahrain’s office space struggles will not go away soon. With more office buildings opening, the market must adjust before rents and demand stabilize.
