Bahrain ends 2022 with consistent performance across real estate asset classes amidst strong economic growth, says CBRE

Bahrain ends 2022 with consistent performance across real estate asset classes amidst strong economic growth, says CBRE

On the back of strong GDP growth, high oil prices and new fiscal reforms, Bahrain’s real estate transaction volumes continued to improve throughout the end of 2022, reaching 5,659 transactions in Q4 and ending the year with a total of 21,603. This marks a full-year increase of 0.7% year-on-year compared to 2021, and a jump of 3.2% from Q3.

Looking at Bahrain’s office sector, CBRE data shows that Grade A & B office rental rates stabilised in 2022, at a monthly average of BD5.250 per square metre, having recorded a decline in the previous year. With supply continuing to outpace demand and key pipeline projects becoming operational in the next twelve months, it is anticipated that rental rates will continue to face downward pressure. Amongst the projects introduced at Cityscape Bahrain, key commercial developments included the office component of Onyx Skyview, which is set to provide 40 offices. There are limited strata title products available in the office sector and this project marks the first in Bahrain Bay.

In the residential sector, average quoted apartment rental rates fell marginally in Q4 2022, down 0.4% from the previous quarter. In terms of sales, average rates declined by 1.3% in the fourth quarter, following