Press release
Bahrain’s Real Estate Transaction Performance Trends Continue in the Second Half of 2024
CBRE releases its Bahrain Real Estate Market Review for H2 2024
February 26, 2025
Associated Contact
Inci Gecekuşu
Head of Marketing & Communications - MENA
CBRE Middle East, the global leader in commercial real estate services, released its latest edition of the Bahrain Real Estate Market Review for the second half of 2024.
In Bahrain, a total of 24,863 real estate transactions were registered in 2024, a -4.8% decrease year-on-year. There was also a dip in value terms with transactions totaling BD1.056 billion, a drop of -1.6% as compared to 2023’s BD1.074 billion and -2.8% compared to 2022’s 1.087 billion. H2 2024 saw subdued performance across real estate sectors. However, the third iteration of Cityscape Bahrain was held in November, showcasing over 50 projects and attracting over 10,000 visitors. The exhibition reportedly saw BD341 million in agreed deals over five days and announcements for multiple new real estate projects, providing a boost to Bahrain’s real estate market.
In the Residential Sector, average sales rates for residential apartments were down -1.6% in H2 2024 as compared to 2023, having remained broadly unchanged in H1. The dynamics of villas were more positive, with sales rates rising 1.8% year-on-year. Sustainability is increasingly becoming a key consideration for developers in Bahrain, as both buyers and renters alike are looking for more eco-friendly and future-proof options, with utility costs a growing concern. As they look to capitalise on international trends, local developers are introducing initiatives such as a deep gravity sewage system to minimise energy consumption and a solar powered treated water irrigation system to alleviate water scarcity concerns.
Looking at the Retail Sector, average occupancy across CBRE’s tracked retail centres remained relatively steady from H1 to H2 2024, with a decrease of just -0.15%, with the highest occupancy rates seen at Bahrain’s destination malls. Trends towards entertainment-based experiences continued within retail properties across Bahrain, as transitional retail seeks to mitigate the ongoing difficulties of increased competition and limited consumer spending power. Supply growth in 2024 was recorded at 12.7% across all shopping centre categories. Recorded average rental rates have remained flat from H1 to H2 2024 across all shopping centre types, following a decline of -4.2% from the previous year.
Average rental rates in Bahrain’s Office Sector declined slightly during H2 2024, with Grade A & B office rates sitting at BD5.1 per square metre per month across tracked locations. Demand remains subdued, however, growth in supply continues, with new quality stock, including buildings meeting international standards, being added to the rental market, albeit at a more conservative pace than previous years. This combination of factors, with growing supply diluting the tempered demand, has impacted occupancy and rental rates across the board.
In the Hospitality Sector, H2 2024 saw 4.7 million passengers travel through Bahrain International Airport, marking an increase of 1.5% as compared to H1. This brought the total passengers for 2024 to 9.4 million, an overall increase of 7.3% year-on-year. The total number of 5* hotel room keys increased by 9.5% from 2023 to 2024, with a further 4.4% growth anticipated during 2025.
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In Bahrain, a total of 24,863 real estate transactions were registered in 2024, a -4.8% decrease year-on-year. There was also a dip in value terms with transactions totaling BD1.056 billion, a drop of -1.6% as compared to 2023’s BD1.074 billion and -2.8% compared to 2022’s 1.087 billion. H2 2024 saw subdued performance across real estate sectors. However, the third iteration of Cityscape Bahrain was held in November, showcasing over 50 projects and attracting over 10,000 visitors. The exhibition reportedly saw BD341 million in agreed deals over five days and announcements for multiple new real estate projects, providing a boost to Bahrain’s real estate market.
In the Residential Sector, average sales rates for residential apartments were down -1.6% in H2 2024 as compared to 2023, having remained broadly unchanged in H1. The dynamics of villas were more positive, with sales rates rising 1.8% year-on-year. Sustainability is increasingly becoming a key consideration for developers in Bahrain, as both buyers and renters alike are looking for more eco-friendly and future-proof options, with utility costs a growing concern. As they look to capitalise on international trends, local developers are introducing initiatives such as a deep gravity sewage system to minimise energy consumption and a solar powered treated water irrigation system to alleviate water scarcity concerns.
Looking at the Retail Sector, average occupancy across CBRE’s tracked retail centres remained relatively steady from H1 to H2 2024, with a decrease of just -0.15%, with the highest occupancy rates seen at Bahrain’s destination malls. Trends towards entertainment-based experiences continued within retail properties across Bahrain, as transitional retail seeks to mitigate the ongoing difficulties of increased competition and limited consumer spending power. Supply growth in 2024 was recorded at 12.7% across all shopping centre categories. Recorded average rental rates have remained flat from H1 to H2 2024 across all shopping centre types, following a decline of -4.2% from the previous year.
Average rental rates in Bahrain’s Office Sector declined slightly during H2 2024, with Grade A & B office rates sitting at BD5.1 per square metre per month across tracked locations. Demand remains subdued, however, growth in supply continues, with new quality stock, including buildings meeting international standards, being added to the rental market, albeit at a more conservative pace than previous years. This combination of factors, with growing supply diluting the tempered demand, has impacted occupancy and rental rates across the board.
In the Hospitality Sector, H2 2024 saw 4.7 million passengers travel through Bahrain International Airport, marking an increase of 1.5% as compared to H1. This brought the total passengers for 2024 to 9.4 million, an overall increase of 7.3% year-on-year. The total number of 5* hotel room keys increased by 9.5% from 2023 to 2024, with a further 4.4% growth anticipated during 2025.
For more market insights, visit our Insights & Research platform.
The Bahrain office market continues to witness notable additional stock being added, particularly within the Grade A segment. Increasing supply met with generally stagnant occupancy rates is placing pressure on rental rates. Investors and developers that provide office solutions that meet the advancing expectations of occupiers, in terms of commercial terms, leading quality and modern facilities are likely to perform better moving forward in a challenging market.
The residential sector has demonstrated mixed performance in registered sales rates for apartments and villas, with villas outperforming slightly in terms of average sales rates, with a slight uptick recorded in H2 2024. Generally, demand from the local population is understood to be driven by the requirement for villa homes, with apartments seen as investment prospects with expatriate tenants as the ultimate end users.
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The Bahrain Real Estate Market Review H2 2024 reports provides our latest macroeconomic and real estate market overview and outlook, covering the Bahrain’s residential, retail, office and hospitality sectors.