The Bahraini parliament has approved legislation to cap rental increases at 5 percent a year.
The new maximum is half the current 10 percent allowed.
Rents across the Gulf have been rising amid a recovery from the property recession that hit in 2009-10.
Steve Mayes, director of sales and agency at real estate consultancy firm CBRE
Middle East, welcomed the move, which he said demonstrated the “the government of Bahrain’s
far-sightedness.”
“The recent rental cap announcement is an important
piece of regulation that seeks to limit future volatility in the Bahrain
markets. Without it we could potentially expect to see rents
rising above an affordability limit, and so affect Bahrain’s competitive
environment,” Mayes added.
The legislation requires the approval of the Shura Council and King Hamad bin Isa Al Khalifa.
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