Figures
Bahrain Real Estate Market Review Q1 2023
May 31, 2023
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Bahrain’s recorded real estate transactions exceed pre-pandemic levels in Q1 2023.
Key Takeaways
- 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.
- 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.
- Average office rental rates have remained stable into 2023, at BD5.25 per square metre per month.
- 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%.
- 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.
- 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.
- Hotel occupancy in Manama increased by 6.0 percentage points YoY in the year to March 2023, and 4.6 percentage points QoQ.
- 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.
- 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%.
