The real estate sector in the Kingdom of Bahrain has been a strong contributor to its economic growth over the years. The sector has been segmented into buying and leasing markets, while the leasing segment is heavily dependent on the expat population.
Although the leasing segment has faced few challenges due to varied factors including Covid – 19, market instability and expats leaving in great uncertainty resulting in tenants hesitating to commit to long-term leasing contracts during the mid-2020.
On the other hand, it did create a great opportunity for luxury properties that offers luxury lifestyle, high standards of safety and security with world-class amenities due to the shift of workplace as many started working from home and these amenities become essentials to people needs. Moreover, students studying online has created a demand for luxurious properties with world-class amenities that offers excellent Wi-Fi services, a business center and amenities that provide good space for tenants to function from home.
With global trade and oil demand picking up and other important services resuming to normal, the economic growth is expected to rebound in 2021 which in turn leading to an increase on investment activities in the real estate market. While Bahrain remains the best place for expatriates to work and live in the Middle East, even as it dropped to seventh place globally from being on top of the list.
The leasing segment is looking positive for the past few months, where the demand for luxurious properties is increasing, which has resulted in creating good demand from investors to invest in luxury properties and with a better quality of life.