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Bahrain Real Estate Market Review Q3 2023

Bahrain’s hospitality and residential markets record marginal uplifts in Q3 2023, while other sectors remain stagnant.

December 7, 2023 10 Minute Read

In the year to date, there was an increase of 5.1% in the first 9 months of 2023, compared with the same period in 2022 in recorded real estate transactions but the figures were down marginally by 2.5% QoQ, as reported by the Survey Land Registration Bureau (SLRB).
In the commercial office sector, average rents have remained constant in the Grade A category overall in the year to Q3 2023, whereas regional markets continue to witness increases in average rents.
Quoted residential rates performance was mixed in Q3 2023. When compared to Q3 2022, all but quoted apartment sales, which fell by 1.7%, increased. Apartment rents increased by 3.2%, while villa rents and sales increased by 4.3% and 1.2% respectively.
Key performance indicators for the hospitality sector demonstrated improvement. Data year-on-year in the year to September 2023 shows that average hotel occupancy in Manama is up by 5.9% compared to the same period in 2022, with RevPARs also up 4.9% YoY, despite ADRs falling slightly at 1.0%.
The retail market continues to witness development of new stock within both the destination mall and neighbourhood plaza categories. While there are concerns over the significant pipeline supply and the impact on rental rates, take up of space in key new projects and growth in consumer spending provide a more optimistic view.