Bahrain Real Estate Market Review Q1 2023

May 31, 2023

By Heather Longden

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Bahrain’s recorded real estate transactions exceed pre-pandemic levels in Q1 2023. 

Key Takeaways

  1. Bahrain’s real estate transactions volumes for Q1 2023 increased 14.5% YoY, with a 12.0% increase QoQ. However overall trading value fell by 17% compared to the same period last year.

  2. In the office sector, total tracked supply of office stock was recorded at 1.36 million square metres, across all grades, with an anticipated growth of 2.5% in total supply over the next 12 months if all projects complete as scheduled. 

  3. Average office rental rates have remained stable into 2023, at BD5.25 per square metre per month. 

  4. Average quoted residential apartment sales and rental rates increased by 3.6% and 2.3% respectively QoQ. When compared with the same period in 2022, apartment rental rates grew by 1.7%, whilst sales rates fell by 2.7%.

  5. We estimate that pipeline projects will bring about a 15.9% increase in the total number of freehold residential apartments in 2023, with new units located predominantly in the Capital and Muharraq Governorates.

  6. The Bahrain Formula 1 Grand Prix in March recorded the highest attendance in its 19-year history, with 36,000 visitors on the main race day and 99,500 over the full weekend.

  7. Hotel occupancy in Manama increased by 6.0 percentage points YoY in the year to March 2023, and 4.6 percentage points QoQ.

  8. ADRs increased at similar rates both YoY and QoQ, at 6.6% and 6.2% respectively, whilst RevPARs increased 19.6% compared to the same period in 2022 and 16.1% compared to Q4.

  9. Development in Bahrain’s retail sector continues to progress, with destination malls projecting opening dates in 2023 and 2024. This will cause a significant increase in the Muharraq Governorate’s share of total stock, which will rise from 19% to 30%.