Residential transactions climb 13% in Bahrain: Knight Frank

Residential transactions climb 13% in Bahrain: Knight Frank

Bahrain - Residential transactional volumes in Bahrain have recovered, rising by 13% during Q1 2023, according to leading global property consultancy, Knight Frank. In its latest Bahrain Real Estate Market Review, Knight Frank also details how the industrial warehousing sector continues to grow, while retail rents remain under pressure. Echoing trends across other GCC countries, Bahrain's logistics sector has remained the star of the real estate market. Robust demand and high gross yields, make this sector particularly attractive. Gross warehouse yields stand at 9%, which compares to 5% for single let villas, 6.5% for single let apartments and 7.5% for offices. Demand for warehousing Faisal Durrani, Partner, Head of Middle East Research, explained: “Like elsewhere in the world, the demand for high quality, internationally specified warehousing is on the rise. The global boom in online retailing has driven up requirements for last-mile logistics facilities, storage warehouses and dark-kitchens; a trend that is set to continue underpinning the strong rental growth recorded by the market.” “Apartment prices have retreated by 3.5% in the last 12-months, while villa prices have risen by a marginal 1.5% over the same period, suggesting an affordability ceiling may have been reached. “Indeed, we have noted a