Bahrain property deals jump to $2.6bn

The value of real estate transactions in Bahrain reached BD1 billion ($2.6 billion) in 2021, growing by 46 percent annually, according to data from the Survey and Land Registration Bureau (SLRB) and the Real Estate Regulatory Authority (RERA).

To maintain this momentum, the government revealed a four-year National Real Estate Plan 2021-2024 in March to promote investments into the sector, develop innovative real estate enterprises, and preserve all the stakeholders’ rights.

In October, the Government of Bahrain announced a new national economic growth and fiscal balance plan. The multi-year, five-pillar plan is one of the largest economic reform programmes for the kingdom and aims to improve Bahrain’s long-term competitiveness.

Swapnil Pillai, associate director research, Middle East, said: “Offshoots of a gradual recovery in the market were already visible as the Q4 2021 Savills residential capital value index remained stable.

“This is the second consecutive quarter where prices across the residential sector remained unchanged across apartments and villas.

“However, on an annual comparison, prices remain on average, 1.6 percent and 4.2 percent lower across apartments and villas, respectively, compared to Q4 2020, creating room for increased investments.”

The residential rental index for Q4 2021 remained relatively stable on a quarterly basis but, similar to capital values, apartment rents were 5 percent more affordable.

The decline in prices was more prominent across the mid-end and high-end sub-segments while values remained stable across the low-end segment.

Hashim Kadhem, head of professional services, Bahrain, said: “Looking ahead, we anticipate the high-end sale market will continue to witness delays in absorption with developers unwilling to revise their pricing strategies.

“However, they are still offering extensive incentives with many developers also partnering with banks to offer attractive mortgage products.”

Savills said uncertainty in the office sector in Bahrain was reflected by an average annual drop in office sales prices of nearly 2.9 percent while mid-end office rentss experienced an average decrease of 13.3 percent due to the dual effects of tenants who either sought cheaper, low-end alternatives, or relocated to higher-end office developments that offered competitive rates.

Kadhem added: “Going forward, a deeper analysis of office space that’s required will occur. International tenants are likely to adopt hybrid working practices, leading to downsizing of existing spaces and take-up of smaller spaces.”