Manama – There were a total of 5,145 real estate transactions in Bahrain in the third quarter of 2023, a slight decrease of 2.5% from the previous quarter. However, if we compare the year-to-date volume, we see a 5.1% increase in the first nine months of 2023 compared to the same period in 2022.
If you look at Bahrain Housing sector, home price performance was mixed in Q3 2023. Compared to Q3 2022, all properties increased except for apartment sales prices, which decreased by 1.7%. Apartment rents increased by 3.2%, and villa rents and sales increased by 4.3% and 1.2%, respectively. Looking at quarter-on-quarter changes, compared to Q2 2023, rental rates decreased slightly for both apartments and villas, while sales rates increased. In the mid-luxury segment, apartment rents fell 2.5% quarter-on-quarter. Meanwhile, rents for villas fell by 0.3%. In terms of sales, rates for apartments and villas increased 1.0% and 3.9% sequentially, respectively. In September, Eagle Hills completed the construction of Marassi Park, a 249-unit luxury residential development on Diyar Al Muharraq Street in Marassi Al Bahrain, which is expected to be ready for handover during the fourth quarter of 2023. Ta. This property is the fifth project to be delivered in the development. It has a land area of 25,500 square meters, has sea views and is within walking distance of both Marassi Beach and the yet-to-be-opened Marassi Galleria shopping mall.
inside office department, average across the Grade A category for the year to Q3 2023, as increased supply has not met the necessary demand from local or international occupiers and vacancy rates remain relatively high. Rent remains constant. Regionally, office rents in the UAE and Saudi Arabia have seen strong growth in the Grade A category, with an average rent increase of 11.4% across all cities surveyed in the year to Q3 2023. Ta. Bahrain currently has one of the lowest office occupancy costs in the region. We expect the flight to quality to continue as new properties arrive in 2024 and 2025, but average rents and occupancy rates are likely to be affected. This is being driven by office occupiers of lower grade spaces, taking advantage of the affordable commercial conditions of Grade A spaces. We continue to witness the development of Bahrain’s flexible office sub-segment, including the opening of new co-working spaces in Q3 2023. The headquarters in Seef Mall consists of his 1,085 square meters of various workplace solutions, including hot desks and offices. In addition to event space, it also includes a Commercial Registration (CR) option, which is mandatory for setting up a business in Bahrain.
within hospitality department, key performance indicators showed improvement. According to his STR data year-on-year through September 2023, average hotel occupancy in Manama increased by 5.9% compared to the same period in 2022, and RevPAR also increased by 4.9% year-on-year. did. This is despite his Average Daily Rate (ADR) being slightly lower at 1.0%. In July, Edama announced the start of construction on two boutique hotels in Biraj Al Jazaiya, the four-star Avani and the five-star Tivoli, both scheduled to open in 2025. Once completed, Biraj Al Jazaiyah’s mixed-use facility will cover 1.3 million square meters. The Mater development master plan also includes residential villas and apartments, retail and F&B, entertainment and offices along 3km of waterfront. Fraser Suites has expanded its services in Bahrain and has signed an agreement with Seef Properties, which operates in Hamara’s Al Riwan. The new offering will offer his 63 serviced apartments, a mix of one, two and three-bedroom apartments spread over three floors. The serviced apartment portion is scheduled to open in the fourth quarter of 2023.
bahrain retail The market continues to see the development of new inventory in both the destination mall and neighborhood plaza categories. Marassi Mall is scheduled to open in February 2024 and will feature approximately 116,000 square meters of GLA. Avenue Phase 2, which will add approximately 40,000 square meters of site, is also due to be completed next year. During the third quarter of 2023, news of Edama’s renovation of Reef Mall in Malkiya, the launch of Time Out Market in Bahrain City Center scheduled to open in 2024, news of Lulu Hypermarket scheduled to open in various regions, and much more A new announcement was made. Located in locations such as Avenue, Manama Center and Diyar Al Muharraq. Although there are concerns about pipeline bulk and the impact on rental rates, space occupancy in major new projects and growth in consumer spending provide a more optimistic outlook.
Heather Longden, Director of Advisory and Transactions at CBRE in Bahrain, commented: “Q3 2023 saw a slight increase in Bahrain’s hospitality and residential sectors. In the housing market, performance was mixed, with announced apartment sales rates declining slightly year-on-year. However, year-on-year, average residential rents increased along with vacation home sales rates across the region. In Manama, hospitality sector occupancy increased by 5.9% compared to the same period in 2022, and RevPAR also increased by 4.9% Other aspects of the market remain stable, with continued development in the commercial office and retail sectors with high-profile projects due for completion soon, which will further add to existing inventory.”
About CBRE Group Co., Ltd.
CBRE Group, Inc. (NYSE:CBRE) is a Fortune 500 and S&P 500 company headquartered in Dallas and the world’s largest commercial real estate services and investment firm (based on 2022 revenue). The company has approximately 115,000 employees (excluding Turner & Townsend employees) and serves customers in more than 100 countries. CBRE provides an integrated suite of services including facilities, transaction and project management to a diverse range of clients. Asset management; Investment management; Valuation and valuation. Real estate rental industry; strategic consulting. Sale of real estate. Mortgage and development services. Visit our website www.cbre.com.