Bahrain’s real estate sector back to pre-pandemic level

Bahrain’s real estate sector back to pre-pandemic level

Bahrain’s real estate market has achieved significant growth last year to support the country’s post-pandemic recovery.

Real estate agents said that with the help of the government and the private sector, the economy is now moving in the right direction. According to a report by Knight Frank, apartments are becoming more popular than villas, owing to lower unit prices and reduced expenses of upkeep and maintenance.

Average rental values across apartments rose by 5% on quarterly basis to BD565 per month, and the average price of an apartment rose by 4.3% to BD810 psm. Average monthly villa lease rates have risen by 7.7% in the last three months and stand at BD1,170, the average sales price for villas increased by 4.5% q/q, to BD625 psm.

The report notes that Reef Island remains the most expensive residential community in Bahrain, owing to its central location. Anecdotal evidence suggests that organisations that implemented hybrid working arrangements are now returning to full occupancy, driving up demand.

The average office lease rates increased by 1.6% q/q to BD63 psm. Bahrain’s retail market has experienced increased activity in the first half of 2022, with both lease rates and occupancy levels rising.

Mr Mohammed Al Qattan, Executive Director of Century 21