Real estate market ‘on steady recovery path’ in Bahrain

Real estate market ‘on steady recovery path’ in Bahrain

Bahrain’s real estate deal-making continued to improve through 2022, says CBRE, attributing the revival to strong GDP growth, high oil prices and new fiscal reforms.

The commercial real estate services and investment firm’s Bahrain Real Estate Market Review Q4-2022 shows the kingdom saw 5,659 transactions in Q4 ending the year with a total of 21,603, marking a 0.7 per cent year-on-year increase from 2021, and a jump of 3.2pc from Q3-2022.

Looking at Bahrain’s office sector, CBRE data shows that Grade A and B office rental rates stabilised in 2022, at a monthly average of BD5.250 per square metre, having recorded a decline in the previous year.

With supply continuing to outpace demand and key pipeline projects becoming operational in the next 12 months, it is anticipated that rental rates will continue to face downward pressure.

Amongst the projects introduced at Cityscape Bahrain, key commercial developments included the office component of Onyx Skyview, which is set to provide 40 offices.

There are limited strata title products available in the office sector and this project marks the first in Bahrain Bay.

In the residential sector, average quoted apartment rental rates fell marginally in Q4 2022, down 0.4pc from the previous quarter.

In terms of sales, average rates declined