Market Watch: Stay Updated on Bahrain’s Real Estate Trends and Insights in 2023

Curious about the Real Estate market trends in 2023, Property Finder has compiled a comprehensive report to give you a complete overview of the market.

The full version is just out; it includes the top highlights and insights of Bahrain’s markets to help you have a quick yet data-based vision over the last period; let’s get into more details!

Highlights

Bahrain’s nominal GDP reached a milestone of 16.2 billion BHD in 2023 with a growth of 2.6% in 2023 which is anticipated to accelerate to 3.5% in 2024.
Bahrain achieved solid economic performance in 2023 and the outlook for 2024 is positive, with growth expected to accelerate in both the oil and non-oil sectors.
Bahrain’s $30 Billion Economic Recovery Plan (2021) targets infrastructure investments across both oil and non-oil sectors with government support expected to significantly contribute to boosting the country’s nominal GDP to 18.4 Billion BHD by 2028.
Inflation remained low at 1% average in 2023, expected at 1.4% in 2024
Real estate activities and construction sectors contributed 13.5% to Bahrain’s GDP in 2023, with 1.3% growth
This sector is anticipated to approach 2 Billion BHD by 2028
Government launched Aqari Data Bank platform in 2023, aligned with National Real Estate Sector Plan (2021-2024)

Market Performance

In December 2023, Bahrain launched the Aqari Data Bank, a centralised real estate platform under the RERA. Aqari serves as the primary source of reliable real estate data, aiming to enhance transparency, provide equal access to information for investors, and contribute to successful projects. This initiative aligns with Bahrain’s National Real Estate Plan and represents a significant digital transformation. However, the real estate market saw an 11.5% decline in sales transactions in 2023, with the Northern governorate recording the highest share.

Northern governorate had the highest share of sales transactions at 3,322
Significant declines observed in the Compounds (-58.3%) and Others (-54.5%) categories
Building and House sales also declined, by 23.3% and 26.1% respectively
Land sales saw a smaller 8.4% decrease, while Flats were the only category to see a slight 1.8% increase

Market Prospects

Ongoing Projects in Bahrain

The residential and mixed-use real estate sector recorded 47 ongoing projects worth $7.127 billion, accounting for 75.8% of total projects and 92.4% of total investments.
The market was dominated by private sector development, contributing 71.7% of the total number of ongoing projects and 82.5% of the total investments worth $5.873 million.
The Capital governorate accounted for the majority of real estate investments, representing 53.8% of the total investment across 18 projects (39.1% of the total).
Muharraq had the largest number of projects with 20 ongoing projects valued at $2.544 million and it contributed to 82.6% of the total number of projects and 89.5% of the total investments in ongoing projects.
The Capital governorate held 51.5% of the total number of privately-owned projects and 64.1% of the private sector investments, while having only 1 governmental project.
Muharraq had the highest number of governmental projects, accounting for 53.8% of the total and 61.4% of the total governmental investment, as well as 39.4% of the total number of private projects and 30.3% of the total private sector investment.
15.2% of the projects have completed about 76% to 90% of the construction.
The Capital governorate had 18 ongoing projects by the end of 2023, with 72.2% of them more than halfway through the construction process.

Launched Projects in 2023

The private sector holds the majority of the newly launched projects in 2023, with 6 projects amounting to 87.9% of the total investments, while the governmental sector had only 3 projects with 12.1% of the total investments ($122.5 million).
In the Manama governorate, the number of newly launched real estate projects decreased from 7 in 2022 to 5 in 2023, but the total value increased by nearly 28.5% in 2023, reaching $870 million. The private sector holds the majority of these projects.
Muharraq had 3 newly launched projects in 2023, with a total estimated investment of $140 million, and the private sector possesses the majority of these new projects.

Delivered Projects in 2023

Around 34 projects totaling $1.5 billion were successfully completed in 2023, a significant growth of 47.8% in volume and 92.4% in value compared to 2022.
Of the total projects delivered in 2023, 50% were located in Muharraq but accounted for only 22.4% of the overall project value. In contrast, the Capital governorate had 11 projects that made up 72.1% of the total project value.
The private sector delivered the majority of projects in 2023, accounting for 79.4% or 27 projects valued at $637 million. The government delivered 7 projects totaling $821.7 million.

Market Trends

Sales Market Trends for Apartments 2023

While apartment buyers favoured communities like Amwaj Islands and Seef, and villa buyers preferred areas such as Amwaj Islands and Diyar Al Muharraq. Apartment prices rose 4% on average, with variations across unit sizes.

Sales Market Trends for Villas 2023

The villa rental market exhibited a mixed performance in 2023, with average asking prices seeing a slight overall decrease compared to the previous year. Certain areas, like Amwaj Islands and Diyar Al Muharraq, recorded solid growth in villa rental prices, particularly for the larger four and five-bedroom units.

Apartment Rental Trends 2023

The Bahrain villa rental market experienced robust growth in 2023, with average prices rising at a strong upward trajectory. The performance was mixed, with some areas seeing modest price rises while others recorded mild decreases. However, the market exhibited an overall upward momentum, pointing to a healthy villa rental segment in Bahrain.