Bahrain’s residential capital values remain upbeat in Q2

Bahrain’s residential capital values remain upbeat in Q2

Bahrain - Overall residential capital values in Bahrain have remained upbeat for a full year as of June, a testament to the resilience of the kingdom's market, according to Savills, a global real estate services provider.

This was largely driven by the 2.9% quarterly increase in the pricing of mid-end villas, stated Savills in its Q2 2022 Bahrain Property Market update.

Meanwhile, apartment capital values increased marginally by 1.2% y-o-y in the mid-end sector. However, low-end apartment sale prices have failed to display any price growth over the past two years owing to the competitive pricing of the mid-end segment.

In the rental market, the villa segment in Bahrain continued to perform strongly with 3% q-o-q price growth amid increased demand as renters seek more space.

On the other hand, mid and high-end apartments were unchanged for the second consecutive quarter whilst low-end apartments recorded quarterly declines of 3.6%, pressured by the increased supply of better units at competitive rates, it stated.

Demand for office space continues to remain strong across Bahrain aided by an improvement in economic sentiment and growth in the non-oil sector, which expanded 5.5% y-o-y in Q1 2022. The Grade B and Grade C project offerings across the city have particularly