Bahrain’s real estate market is building back to pre-pandemic growth levels, with a new report showing a rise in both transaction volume and property valuation.

Compiled by ASK Real Estate, a local real estate services provider, the report notes that total real estate transactions volume in the kingdom at the end of the third quarter this year stood at 15,943, nearly seven per cent higher than 14,921 transactions recorded in the same period last year.

Citing data from the Survey and Land Registration Bureau (SLRB), the report notes that the total value of transactions for the first nine months of the year was BD799.2 million, whereas it was BD1.04 billion for the whole of last year.

According to the report the real estate sector is expecting new supplies of residential and commercial real estate units. However, rental rates are expected to remain stable in prime areas as they provide good investments yields at 8-10pc.

Karim Yazji, the chief executive at ASK Real Estate said, “The real estate market in Bahrain is continuing to show great prospects as it offers many attractive investment opportunities. Despite the difficult times it witnessed during the pandemic, statistics shows that the real estate sector has improved remarkably and it continues to provide attractive returns.”

The report noted that prime yields for retail investments in Manama are in the order of 8-10pc and rentals range between BD9-15 per sqm.

The commercial office market continues to be dominated by weak occupier demand coupled with oversupply.

Despite the worsening of the situation by the outbreak of Covid 19, Manama’s market has been favoured by tenants over the years. However, the lukewarm economic backdrop over the past few years resulted in subdued demand, with rents across all market segments stagnating. The prime yield for office investments is in the order of 8-10pc and rentals are in the range of BD4-7 per sqm.

Moreover, it mentioned that rental rates in Bahrain’s residential property have largely remained stagnant or flat in most prime areas.

The new offerings are expected to significantly add to the existing stock and that is likely to put more pressure on the values if not coupled with increased demand.

The planned expansion of The Avenues shopping mall is also likely to add pressure on the values and general occupancy levels for the area.

Vacancy rates across the commercial market hover around 40pc with best-in-class schemes commanding better occupancy levels.

Older buildings with inefficient floor plans and poor parking arrangements are suffering from lower occupancy levels and higher falls in the rental rate.

The company announced it will be launching the first version of the report during its participation in Cityscape Bahrain 2022, that takes place from November 22-24, 2022 at Exhibition World Bahrain in Sakhir.

 

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