Real estate market in Bahrain buoyant as residential transactions surge

Real estate market in Bahrain buoyant as residential transactions surge

BAHRAIN’S real estate market is buoyant, with residential transactions surging by 5.1 per cent and industrial lease rates soaring by 5.3pc during the first nine months of 2023, according to Knight Frank.

The global real estate consultancy’s latest report ‘Bahrain Real Estate Market Review – Autumn 2023’ notes that the overall value of transactions rose 1.9pc during the same period to BD814 million.

Expats, comprising more than half of Bahrain’s population by 2022, remain a dominant force in the rental market, fuelling a persistent demand for rental properties, especially in expat-enclaves like Juffair, Amwaj Islands, and Al Seef, the report underlines.

“The higher growth in transaction volumes compared to transaction values suggests a decline in prices,” said the firm’s Mena head of research and partner Faisal Durrani.

“Villa developments have continued to captivate buyers, with average sales prices in the mid-end segments holding steady at BD625 per square metre. However, the cost of credit has affected premium developments, particularly apartments, which saw a 2pc decline to BD665 per square metre.”

On the office market, the report says corporate tenants’ preference for premium Grade A offices has ignited a robust demand for upscale office spaces over the past year. Yet, rental