Total real estate transactions in Bahrain rose 1.9% to 814 million Bahraini dinars ($2.16 billion), supported by a 5.1% increase in transaction volumes in the first nine months of 2023, Knight Frank said. said in its latest report. Market Review – Fall 2023. ”
The high growth in trading volume relative to transaction value suggests a decline in prices, Faisal Durrani, partner and head of research, said in the report.
“Villa developments continue to attract buyers, with average sales prices in the mid-range priced stable at BD 625 per square meter. However, credit costs are impacting premium developments, especially apartments, with It fell 2% to BD 665,” he added.
Expats are estimated to represent 52.6% of the total population by 2022 and continue to be the driving force behind Bahrain’s rental market.
Demand for rental properties remains high, especially in expat-friendly areas such as Juffair, Amwaj Islands and Al Seef.
However, the performance of Bahrain’s rental market has remained subdued over the past 12 months, with both villas and apartments remaining under downward pressure due to a clear demand and supply imbalance.
Average rents for vacation homes across major regions decreased slightly by 1% in the third quarter, while average rents for apartments decreased by 2.2% over the same period.
However, the report notes that Diyar Al Muharraq, Dilmunia and Riffa have a higher proportion of newly delivered high-quality assets.
(Edited by Brinda Darasha; brinda.darasha@lseg.com)