Manama, Bahrain – Real estate transactions in Bahrain recorded a marginal 2.5 percent decline in Q3 2023, totaling 5,145 compared to the previous quarter.
Despite this dip, a promising 5.1 percent surge is observed in year-to-date transactions for the first nine months of 2023, showcasing overall resilience in the market, commercial real estate services and investment firm CBRE Group said in a statement.
Residential Sector
The residential sector in Bahrain displayed mixed performance in Q3 2023. Quoted apartment sales experienced a slight decrease of 1.7 percent, while apartment rents rose by 3.2 percent. Villa rents and sales, on the other hand, saw significant increases of 4.3 percent and 1.2 percent, respectively. Notably, Marassi Park, a luxury residential development, marked completion in September, adding 249 units to the market.
Office Sector
Bahrain’s Grade A office category maintained steady average rents in the year to Q3 2023. However, a regional perspective revealed substantial increases in the UAE and Saudi Arabia, with an average rental surge of 11.4 percent. Bahrain presently boasts some of the lowest office occupancy costs in the region, but the upcoming influx of new stock in 2024 and 2025 may impact rental rates.
Hospitality Sector
Key performance indicators in the hospitality sector demonstrated improvement, with a 5.9 percent increase in average hotel occupancy in Manama compared to the same period in 2022. Despite a slight 1.0 percent dip in average daily rates, Revenue Per Available Room (RevPAR) grew by 4.9 percent. Major developments, including two boutique hotels and Fraser Suites’ expansion, signal a thriving hospitality market.
Retail Market
Bahrain’s retail market continues to evolve, with Marassi Mall and Avenues Phase 2 set to introduce substantial additional space in 2024. New announcements, such as Edamah’s Reef Mall renovation and the launch of TimeOut Market, contribute to the growing retail landscape. Despite concerns about supply impacting rental rates, optimistic views prevail due to increased consumer spending.