Rental rates in Bahrain have continued to fall as a result of the unrest in the first half of 2011, according to the latest Market View report from the UK’s CB Richard Ellis (CBRE).

Plans for businesses to invest or expand in Bahrain have been affected by the political problems and as a result demand for office space in the kingdom has weakened. This has resulted in office lease rates falling for the second successive quarter.

The fall in office rental rates has been most severe at the top end of the market, as some businesses move into less expensive offices in order to cut costs.

Lease rates have also fallen in the residential sector for the first half of the year, according to CBRE’s report. The leasing rates for the residential market differ between types of housing. Rental rates for high-end properties have continually fallen over the past three years, while rates for low-cost houses have remained relatively stable over this period.