Bahrain residential deal volumes up 5.1%; soar to $2.1bln

Bahrain residential deal volumes up 5.1%; soar to $2.1bln

Bahrain's residential sector has witnessed a 5.1% increase in real estate transactions during the first nine months of 2023, according to global property consultancy Knight Frank.

Additionally, there has been a marginal increase of 1.9% in the total transaction value, reaching BD814 million ($2.1 billion), stated Knight Frank in its latest report 'Bahrain Real Estate Market Review – Autumn 2023.'

While the office, retail and industrial sectors face challenges, the kingdom's hospitality sector is set to welcome 14.1 million visitors by 2026, it added.

Faisal Durrani, Partner – Head of Research, Mena, said: "The higher growth in transaction volumes compared to transaction values suggests a decline in prices. Villa developments have continued to captivate buyers, with average sales prices in the mid-end segments holding steady at BD625 per sq m."

"However, the cost of credit has affected premium developments, particularly apartments, which saw a 2% decline to BD665 per sq m," he noted.

Additionally, expatriates, constituting an estimated 52.6% of the total population by 2022, continue to be a driving force in Bahrain's rental market. Demand for rental properties remains consistently high, particularly in sought-after expat-friendly locales such as Juffair, Amwaj Islands, and Al Seef, he added.

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