Latest trends in Bahrain real estate and hospitality.

With the signs of the pandemic stabilizing and things getting back to normal and with the Government of Bahrain announcing one of the largest economic reform programmes a multi-year national economic growth and fiscal balance plan, Bahrain’s economy is slowly on a recovery phase.

At the same time, various real estate sources have spotted encouraging signs in Bahrain’s real estate market, records indicate momentum is picking up in the market, with both transactions in the sale and rental market increasing.

Bahrain Real estate sector

Citing data from the Survey and Land registration bureau, the value of real estate transactions rose by 46%, from $1.91 bn in 2020 to $2.bn in 2021. Adding further credence to the belief that the market is reviving is the 35pc increase in the total number of real estate transactions to 26,136 in 2021, from 19,405 transactions in 2020.

Data shows that the number of listings across both the sale and rental segments jumped during July–December 2021 from July to December 2020.

The rental market in Bahrain

The residential rental index for Q4 2021 remained relatively stable on a quarterly basis; however, similar to capital values, on an annual comparison, rental values across apartments were 5% more affordable.

Listings for rental units in the Southern Governorate have almost doubled, and a 35pc increase was recorded for the number of listings in the Capital Governorate in the same time frame. Rental units have not found a stable pricing index, with only Muharraq recording a price increase of 5pc in the same period. While it may take a while for the market to find a stable pricing index. Another trend that has been noticed is the increase in demand for the rental of luxury apartments in Bahrain.

The apartment sale market in Bahrain

Prices for the sale market stabilized somewhat in H2-2021 when compared with H2-2020, with increases recorded for advertised media prices per sqm across Bahrain, with the Northern Governorate posting an 8pc during the period.

As for sale listings, an increase of over 60pc was recorded in Muharraq, Northern and Southern Governorates, while the Capital Governorate logged a 30pc increase. This is solidified by the fact that an increased number of apartments are for sale are available and being handed over.