The Kingdom of Bahrain's property market has been on a steady growth trajectory, with the government's initiatives and the post-pandemic economic outlook leading the way. While there have been some fluctuations in certain areas of the market, overall, the real estate industry in Bahrain has remained stable.
According to the latest Q3 report by Savills, the capital value of the residential market has remained largely stable, with villa development being the asset choice, leading to an average increase of 1.2% year-on-year. However, there has been a decrease of 1.1% in apartment developments due to higher vacancy levels, especially in older buildings with poor maintenance and lack of amenities. This oversupply in some pockets of the residential market is expected to impact the market negatively going forward.
The leasing market across villas has projected a growth of 2.9% year-on-year, with a surge in villa prices by 10.3% quarter-on-quarter, resulting in full occupancy of luxury and low-end villas. However, the demand for apartments has remained stable, with no movement in prices for low-end apartments. High-end apartments, on the other hand, have regained ground in pricing from last year, with year-on-year prices now at parity.
Overall, the real estate market in Bahrain is stable currently. However, with the brewing global turmoil and the rapidly changing debt markets both globally and locally impacting the lending rates, there may be a marginal decline in markets going ahead. Despite this, most real estate firms and agents believe that the government's initiatives are improving the economic outlook, leading to a positive future for the industry.