Bahrain’s real estate transaction volumes and economic growth projections continue to improve despite global challenges, says CBRE

Bahrain’s real estate transaction volumes and economic growth projections continue to improve despite global challenges, says CBRE

Manama – With Bahrain experiencing its fastest GDP growth rate in over a decade, real estate transaction volumes have improved in Q3 reaching a total of 5,482. This was underpinned by 2,431 recorded transactions in August, making it Bahrain’s second most successful month since 2018.

Looking at Bahrain’s office sector, the flight to quality has continued, with the Kingdom’s landmark and newer office buildings recording the highest occupancy rates of those tracked by CBRE in Q3 2022. Leading Grade A buildings are providing competitive rates and flexible solutions to attract tenants. In addition, we have witnessed occupier space requirements decreasing by an average of 11% in 2022 compared to 2019. Nevertheless, we have observed a rebound in occupier demand, with a 27% increase in the number of enquiries in Q3 2022 compared to Q3 2021.

In the residential sector, both quoted average apartment sales and rental rates witnessed only marginal changes from Q2 to Q3 2022, with sales rates increasing by 1.3% and rental rates falling by -1.6%. The biggest variation, at -5.9%, was seen in apartment rents in the Capital Governorate, with growing supply likely placing downward pressure on rental rates. In terms of villas, Q3 saw a slight decrease in