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Bahrain Real Estate Market Review H1 2024
Bahrain’s real estate transaction values record an overall increase, with mixed sectoral performances.
July 31, 2024 15 Minute Read
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Key Takeaways:
- There were 11,559 total real estate transactions in Bahrain in H1 2024, a decrease of 0.5% compared to H1 2023. The total value of H1 2024 transactions, however, amounted to approximately BD576,346,743, which is an increase of 6.2% compared to H1 2023.
- Sales rates of residential villas increased by 7.8% on a square metre basis in H1 2024 compared to 2023 rates, according to RERA’s transaction data. Apartment sales rates, however, remained consistent with 2023 figures. In terms of quoted apartment rental rates, H1 saw some variability in terms of performance by number of bedrooms; however, all bedroom types saw a decrease in rates of between 2.5% to 4.1%.
- Office rental rates in Bahrain continue to decline for both prime and non-prime properties. In H1 2024, average office rental rates declined by 2.9% compared to 2023. Development activity in the sector has been more subdued, however, total office supply is expected to reach to 1.38 million square metres of GLA by year-end 2024, an increase of 1.2% year-on-year.
- Both inbound tourism figures and hotel key indicators have improved in H1 2024. In the year-to-date to June, compared to the same period in 2023, average hotel occupancy rates in Bahrain have increased by 7.0%, or 3.6 percentage points. Additionally, average ADRs increased by 2.6% and average RevPARs increased by 9.8%.
- Average retail occupancy across CBRE’s tracked properties only fell by 2.0 percentage points, to 68.9%, following the introduction of significant supply to the market, with a key opening in H1 2024. This follows a period of continuous, yet marginal, occupancy growth since H1 2022.
