Bahrain’s real estate continues upward momentum in Q1

Bahrain’s real estate continues upward momentum in Q1

The Bahrain real estate sector largely continued the upward momentum from 2022, albeit at a slower pace given increasing global macro-economic uncertainties, according to leading real estate expert Savills.

In the residential market, villa developments continued to gain in popularity in Q1 2023 with capital values across the mid-end segment rising 5.2% y-o-y, stated Savills in its Q1 2023 Bahrain Property Market in Minutes report.

Rates are now estimated at BD603/sq m compared to BD573/sq m in Q1 2022. However, the increased cost of credit has impacted demand for high-end/premium developments, with apartments feeling the impact more than villas. High-end apartment values have dropped by 1.3% q-o-q.

In the rental market, demand for low-end and mid-end villas remained strong as end-users limited their expenses owing to the current global economic landscape.

Whilst there has not been any price growth across the low-end segment during the current quarter, the gradual increase in rents over the past few quarters has meant that prices are now 18.5% higher compared to Q1 2022 and are estimated at BD800/month.

Meanwhile, the apartment rental market continues to face downward pressure as the sector battles with the supply/demand imbalance, it stated.

In the office space, enquiry levels were strong across mid-end and high-end