BD psm
BD psm
BAHRAIN REAL ESTATE
MARKET REVIEW
SUMMER 2023
Residential Market
Average Apartment Rents
Average Villa Rents
340 335
415
405
415
440
540
560
495
530
800
900
Juair Amwaj Islands Seef Reef
1-bed 2-bed 3-bed
1-bed 2-bed 3-bed
Saar Adliya Amwaj Islands
3-bed 4-bed
582
570
1,089
750
560
563
872
633
558
462
761
614
Juair Amwaj Islands Reef Island Seef
Average Apartment Sales Prices
Amwaj Islands Saar Ria Views Barbar
Average Villa Sales Prices
3-bed 4-bed
The average rental value for apartments fell by 3.5% over the last 12 months to BD 515 per month.
The average price for apartments declined by 3.5% year-on-year to BD 668 per sqm.
Over the last 12 months, average villa rents fell by 1.5% and stand at BD 1,067 per month.
The average price for villas increased by 1.5% over the last 12-months to BD 640 per sqm.
Bahrain's real estate market has experienced a 0.7%
year-on-year increase in the total volume of residential
transactions (c. 21,600 deals) as at the end of 2022. Total
transaction values have climbed by 3.9% to BD 1.08 billion.
Affordable housing projects, those offered through the Mazaya
Social Housing Finance Program, are the most popular options
among Bahraini nationals.
We have noted a surge in demand for affordable housing
units in Bahrain, as many families are looking for both
comfortable and cost-effective homes owing to the current
global economic landscape, increased cost of credit and
high residential prices.
Over the last 12 months, Bahrain's real estate market has
experienced fragmented performance, which can be
attributed to a lack of liquidity and a decreased appetite for
investment. However, favourable economic legislation, such as
the foreign ownership law, introduced in 2016, the strata law,
which came into effect in 2018, the creation of 10 freehold
zones and the introduction of the Golden Residency Visa in
2022, which grants long-term residency, are all anticipated to
stimulate activity in the real estate market.
600
500
675
850
490
660
800
400
900
1,200
1,300
900
1,200
900
BD/Month
BD/Month
The volume of residential
transactions increased by
13% during Q1 2023,
compared to the same
period last year.
Source: Knight Frank
BAHRAIN REAL ESTATE
MARKET REVIEW
SUMMER 2023
Retail Market Industrial Market
Average retail lease rates declined by 2.6% to BD 172 per sqm per annum in the
12-months to the end of Q1.
Average warehouse lease rates grew by 9.9% year-on-year to BD 35 per sqm per annum.
Dragon City and The Avenue Malls, which combine traditional retail with new F&B,
entertainment, and leisure, continued to enjoy the highest lease rates and occupancy
levels, with the latter approaching BD 200 per sqm per annum and 95%, respectively.
The trend among the younger population to visit developments that mix the pleasures of
conventional shopping with new F&B and leisure opportunities has increased significantly.
Bahrain launched a new Golden License scheme in 2021
for foreign and local businesses to stimulate economic
growth, to the benefit of Bahrain's commercial real estate
sector. It offers various incentives for businesses, such as
priority in land allocation, streamlined business licensing,
and efficient building permit approvals. The new license
program is part of an economic recovery plan to create
more than 20,000 jobs annually for citizens by 2024 and
attract US$ 2.5 billion in foreign investment by the end of
2023.
The concept of flexible workspaces, including
co-working spaces and serviced offices, has gained
popularity in Bahrain. This trend is a reflection of the
changing nature of work and the growing need for
flexibility and agility in business operations. The growing
number of freelancers, small businesses, and startups in
the country are the primary drivers of this trend. These
individuals and companies often lack the resources and
infrastructure to set up their own offices, making
co-working spaces and serviced offices a more
affordable and practical option.
Similar to other GCC countries, the logistics sector is the best performing asset class in
Bahrain. The trend is fulled by strong demand and high yields of 9% compared to gross
yields of 5% for single let villas, 6.5% for single let apartments, and 7.5% for offices, as well
as increasingly long leases.
Bahrain has established dedicated industrial zones, such as The Bahrain Logistics Zone
(BLZ) and The Bahrain International Investment Park (BIIP), to support logistics and
warehousing activities and attract investment. Bahrain International Investment Park is
home to over 114 of the region's largest manufacturing and industrial services firms, with
approximately 80% of the investment coming from foreign companies.
For more information, contact us
Faisal Durrani
Partner , Head of Middle East Research
F[email protected]ank.com
+44 7885 997 888
Stephen Flanagan
Partner - Head of Valuation & Advisory, MENA
+966 55 8866 480
Amar Hussain
Senior Manager, Saudi Arabia | Qatar | Bahrain
Amar[email protected]ank.com
+966 55 2323 036
Ayman Albahhari
Graduate Surveyor, Bahrain
Ayman.[email protected]
+973 3701 3717
Mohd Firdaus Idris
Manager, Bahrain
[email protected]ank.com
+971 56 1100 251
Commercial Market
Office Market
Al Seef Diyar Al Muharraq Bahrain Bay Ria Hidd BIW Salmabad Sitra Ras Zuwayed Tubli
68
65
59
43
Seef Financial Harbour Diplomatic Area Ria
166
163
178
180
36
37
31
36
34
BD psm (p.a.)
BD psm (p.a.)
BD psm (p.a.)
Kingdom of Bahrain
Office No. 2132, Building No. 2648 Road No. 5720, Block No. 257, The Lagoon Island, Muharraq.
Average office lease rates fell by 2.1% in the last 12 months and stand at BD 59 per
sqm per annum.
Source: Knight Frank
