Bahrain’s Real Estate Market Continues Growth Momentum in Q2 2023

Bahrain’s Real Estate Market Continues Growth Momentum in Q2 2023

Bahrain’s economy saw an increase of 4.9% in 2022, the country’s strongest growth in more than nine years, propelled by the non-oil sectors that remained robust in 2022. In 2023, however, it is expected that the GDP will recede to 2.2% due to the drop in oil production and prices and the slowdown in the non-oil sector, as per the Savills Q2 2023 Bahrain Property Market in Minutes update.

Residential Sales Market

The demand for villas exceeded the apartment sector, and the inquiry levels and transactions were concentrated across the mid-range segment. Despite this preference for villas, the capital values have remained at the same level during the second quarter, and rates are estimated at BHD 603 per sq m. However, values on a year-on-year basis have increased by 2.3%.

The average capital values across the high-end villa developments have decreased by 1.2% on a quarterly basis to stand at BHD 600 per sq m. This decrease in average values is attributed to the correction in pricing across villa developments in Al Marsa Floating City.

Apartment values in the low-end segment have remained stable on a quarterly basis whilst the mid-end and high-end segments have decreased marginally.

Residential Rental Market

The demand for rentals across Bahrain