Bahrain real estate transactions continue to grow amid moderate performance

Bahrain real estate transactions continue to grow amid moderate performance

Doha, Qatar: Real estate transactions in Bahrain totalled 5,279 in Q2 2023, according to SLRB data. This marks an increase of 7.1% year-on-year, but a decrease of 16.7% compared to last quarter, which is likely due to Ramadan and both Eid holidays falling during Q2.

Looking at Bahrain’s residential sector, average quoted apartment rents increased by 2.1% in Q2 across governorates compared to Q1, while quoted apartment sales rates fell by 1.1%. The highest rates continue to be seen in the Capital Governorate, although the Muharraq Governorate is beginning to close the gap, with newly delivered quality assets achieving higher rates in the likes of Diyar Al Muharraq and Dilmunia. In terms of villas, there were marginal changes in rates in Q2, with quoted rents falling by 1.0% and sales increasing by 0.6% compared to Q1.

In the office sector, we have seen an uptick in registered leases in CBRE’s managed properties in H1 2023. The Grade A & B commercial office market continues to serve two main demand drivers: government and quasi-government entities seeking larger floor plates, and international firms requiring small-to-medium-sized units. While rental rates remain relatively stable, vacancy rates have begun to fall for the first time in recent