Bahrain Flexible Office Space Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Bahrain flexible office space market is segmented by Type (Private offices, Co-working space, Virtual offices, Others), by Application (IT and communications, Media and entertainment, Retail, Consumer goods, Others), and by Cities (Manama, Riffa, Muharraq, Hamad Town and Other Cities). The report offers market size and forecasts for Bahrain flexible office space market in value (USD Billion) for all the above segments.

Market Snapshot

Bahrain Flexible Office Space Market - Market Summary
Study Period: 2018-2027
Base Year: 2021
CAGR: >8 %

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Market Overview

The Bahrain flexible office space market is expected to grow at a CAGR of over 8% during the forecast period of 2022-2027.

Despite the negative market effects of COVID-19, research indicates that flexible office spaces will likely grow in popularity in Bahrain as a result of the pandemic. As companies try to figure out how to handle in-office work post-pandemic, landlords and developers across the country are dealing with rising vacancy rates and declining asking rents. Low-end offices have struggled to compete the most with a 10.1% rental price decline y-o-y in Q3 2020. It must be noted that the lower end of the market has witnessed rental rates similar to those offered in the industrial market which highlights the stress level the market is facing.

In Bahrain, the start-up scene is exploding, and there is an incredible support network and ecosystem for new businesses. Bahrain has a strong entrepreneurial culture, which is bolstered by Tamkeen, the government-funded business support system. In addition to co-working spaces, there are a number of other accelerators and incubators that provide assistance. These are typically for start-ups that have received funding.

In the region, flexible office spaces, such as co-working, are still in their early stages. Some major global brands have yet to enter the market, while others have yet to launch full-service offerings. On the other hand, occupants are thinking about the regulatory and other implications of flexible spaces on their daily operations.

Occupiers are expected to analyze their office requirements with a strong probability of downsizing as more flexible working conditions are offered to employees. 

Scope of the Report

Flexible office space is a type of workspace designed to provide employees with a variety of different places and ways to work. Unlike traditional offices with fixed and assigned desk positions, workers in a flexible office space can choose the area of the office that best suits the type of work they need to do at that moment. Bahrain flexible office space market is segmented by Type (Private offices, Co-working space, Virtual offices, Others), by Application (IT and communications, Media and entertainment, Retail, Consumer goods, Others), and by Cities (Manama, Riffa, Muharraq, Hamad Town and Other Cities). The report offers market size and forecasts for Bahrain flexible office space market in value (USD Billion) for all the above segments.

By Type
Private offices
Co-working space
Virtual offices
Others
By Application
IT and communications
Media and entertainment
Retail
Consumer goods
Others
By Cities
Manama
Riffa
Muharraq
Hamad Town
Other Cities

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Key Market Trends

Rise in Startups Driving the Market

Bahrain's fast-growing start-up scene has been aided by the country's initiative to connect its citizens to the internet. According to the World Economic Forum, 98% of Bahraini citizens use the internet, placing Bahrain third in the world.

In StartupBlink's 2021 Global Startup Ecosystem Index, Bahrain has risen nine places to 66th place globally. The country is ranked fourth in the Middle East, demonstrating its regional strength, with growth expected to continue through 2020.

Bahrain also ranks 64th in the world in the 'Software & Data' vertical, while Manama, the kingdom's capital, rose 103 places to 337th in the world among cities. StartUp Bahrain, Tamkeen, and Bahrain FinTech Bay are among the country's other initiatives.

According to the latest World Investment Report (WIR 2021) from the United Nations Conference on Trade and Development, Bahrain saw FDI inflows of $1.007 billion in 2020, according to GDN (Unctad).

FinTech has become more competitive in recent years, with several individuals and organizations launching industry-disrupting projects.

Bahrain Flexible Office Space Market - Driving Factor Trend

Digital Transformation in the Country

Bahrain's Economic Vision 2030, an ambitious national development plan based on the principles of sustainability, competitiveness, and fairness, includes digital transformation as a pillar. Furthermore, the government's Digital Government Strategy 2022 highlights the government's commitment to transforming its services through emerging technologies, thereby assisting citizens and residents in living better lives.

The government is constructing a robust digital infrastructure and ensuring that everyone has access to the Internet. This is extremely crucial given that Internet usage is expected to increase by 400% by 2025.

Bahrain was the first GCC country to issue IoT connectivity standards and to support the use of the frequency band for IoT (NB-IoT) systems in international mobile communications networks. The Information & eGovernment Authority (iGA) has provided frequency bands to government entities in order to support the Kingdom's Digital Transformation and Vision 2030 goals for smart cities, IoT, and Machine-to-Machine (M2M) communication.

Amazon Web Services (AWS) opened its Middle East (Bahrain) Region office in 2019, putting the Kingdom in a strong position to take advantage of cloud computing's benefits. Developers, start-ups, and enterprises, as well as government, educational, and non-profit organisations, can use the infrastructure to run their applications and serve end-users from data centres in the Middle East, as well as leverage advanced technologies from the world's leading cloud, to drive innovation. In 2021, AWS predicts a demand for 10,000 data solution architects in the region over the next five years, with over 2,300 young Bahrainis enrolling in the AWS Educate programme.

Improved connectivity, such as faster WiFi and VPNs, which allow employees to work remotely in a secure manner, is paving the way for more businesses to adopt flexible working - and flexible space - policies.

Meanwhile, in the coming years, 5G ultra-high-speed internet may enable the rise of augmented-reality video conferences or AI-powered hot-desk assignments, making it even easier for employees to work from anywhere.

Bahrain Flexible Office Space Market - Driving Factor Trend

Competitive Landscape

The market is relatively fragmented with a large number of local and international players, including Regus, Savills, WeWork, Servcorp, etc. as the major players. Fragmentation in the market is expected to increase with independent companies in the space actively increasing and developing new spaces in the market.

Recent Developments

In February 2022, Al Tamimi & Company, the region's leading law company, has signed a memorandum of understanding with Bahrain FinTech Bay, one of the Middle East's largest and most dynamic FinTech hubs. The agreement reflects the law firm's Bahrain office's long-standing mutual collaboration with the business incubation hub. Al Tamimi & Company will host legal 'drop-in' clinics for start-up and scale-up entities operating in or targeting Bahrain as part of the collaboration, Since 2017, Al Tamimi & Company's Bahrain office has been heavily involved in the start-up space (with a particular focus on the FinTech sector).

In April 2021, Bahrain FinTech Bay joins forces with the Real Estate Regulatory Authority (RERA) to boost proptech in the Kingdom and make it a regional leader in the MENA region. The two entities' joint efforts will be accelerated to achieve a strong and sustainable real estate sector, in line with the Kingdom's Vision 2030 and the National Real Estate Plan (2021-2024).

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS AND INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

      3. 4.2.3 Opportunities

    3. 4.3 Value Chain/Supply Chain Analysis

    4. 4.4 Industry Attractiveness - Porter's Five Forces Analysis

    5. 4.5 Current Economic and Flexible Office Space Market Scenario

    6. 4.6 Technological Innovations in the Flexible Office Space Market

    7. 4.7 Impact of Government Regulations and Initiatives on the Industry

    8. 4.8 Impact of Remote Working on Space Demand

    9. 4.9 Insights into Flexible Office Space Construction Costs

    10. 4.10 Insights into Key Flexible Office Space Industry Metrics (Supply, Rentals, Prices, Occupancy (%)/Vacancy (%))

    11. 4.11 Insights into Rents, Leasing, and Rental Yields in the Flexible Office Space Segment

    12. 4.12 Insights into Key Trends on Rental and Leasing

    13. 4.13 Impact of COVID - 19 on the Market

  5. 5. MARKET SEGMENTATION (market size by value)

    1. 5.1 By Type

      1. 5.1.1 Private offices

      2. 5.1.2 Co-working space

      3. 5.1.3 Virtual offices

      4. 5.1.4 Others

    2. 5.2 By Application

      1. 5.2.1 IT and communications

      2. 5.2.2 Media and entertainment

      3. 5.2.3 Retail

      4. 5.2.4 Consumer goods

      5. 5.2.5 Others

    3. 5.3 By Cities

      1. 5.3.1 Manama

      2. 5.3.2 Riffa

      3. 5.3.3 Muharraq

      4. 5.3.4 Hamad Town

      5. 5.3.5 Other Cities

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Overview (Market Concentration and major players)

    2. 6.2 Company Profiles

      1. 6.2.1 Regus

      2. 6.2.2 Servcorp

      3. 6.2.3 Diwan Hub

      4. 6.2.4 Space 340

      5. 6.2.5 Letswork

      6. 6.2.6 Spire Hub

      7. 6.2.7 Brilliant Lab

      8. 6.2.8 Alfanar

      9. 6.2.9 The Startup Factory

      10. 6.2.10 Brinc Batelco IoT Hub*

    3. *List Not Exhaustive
  7. 7. FUTURE OF THE MARKET

  8. 8. APPENDIX

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Frequently Asked Questions

The Bahrain Flexible Office Space Market market is studied from 2018 - 2027.

The Bahrain Flexible Office Space Market is growing at a CAGR of >8% over the next 5 years.

Regus, Servcorp, Diwan Hub, Space340 , Letswork are the major companies operating in Bahrain Flexible Office Space Market.

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