June 24, 2024

Bahrain real estate market sees ‘encouraging signs’

Online real estate platform Property Finder has spotted encouraging signs in Bahrain’s real estate market, as it gathers momentum on the back of a continued increase in the number of transactions.

According to the firm, while the price index in the market will take some time to find stability, the fact that a rebound has begun can be said with confidence.

Citing data from the Survey and Land Registration Bureau, Property Finder noted that the value of real estate transactions in the kingdom rose by 46 per cent to $2.8 billion in 2021 when compared with $1.9bn in 2020.

Adding further credence to the belief that the market is reviving is the 35pc increase in the total number of real estate transactions to 26,136 in 2021, from 19,405 transactions in 2020.

Records indicate momentum is picking up in the market, with both transactions in the sale and rental market increasing across the kingdom.

A key sentiment booster is the Economic Recovery Plan announced late last year as the blueprint to drive economic growth in the national economy.

Based on five pillars, the plan would see more than $30 billion invested in sectors including infrastructure, industrial, housing, tourism, and healthcare.

The sale market has been on an upward trajectory since 2020, and has continued to find demand from investors and first-time buyers, who are now more confident in investing in the market, as well as lower prices, said Property Finder Saudi Arabia and Bahrain country manager Khaled Al Saeh.

“In addition, there has also been rotation in the rental market, with tenants upgrading their homes, or shifting to newer units that have been recently handed over in the market.”

Mr Al Saeh feels regulatory reform initiated by the Real Estate Regulatory Authority (RERA) aimed at creating a more transparent market, has propped up demand in both the sale and rental segments.

Data from www.propertyfinder.bh shows that the number of listings across both the sale and rental segments jumped during July–December 2021 from July–December 2020.

Listings for rental units in the Southern Governorate have almost doubled, and a 35pc increase was recorded for the number of listings in the Capital Governorate in the same time-frame.

As for sale listings, an increase of over 60pc was recorded in Muharraq, Northern and Southern Governorates, while the Capital Governorate logged a 30pc increase. This is solidified by the fact that an increased number of units are being handed over.

Prices for the sale market stabilised somewhat in H2-2021, when compared with H2-2020, with increases recorded for advertised media prices per sqm across Bahrain, with the Northern Governorate posting an 8pc during the period.

However, rental units have not found a stable pricing index, with only Muharraq recording a price increase of 5pc in the same period.

While it may take a while for the market to find a stable pricing index, the operator of the listings portal has asserted that the Bahrain market continues to gain traction, with the number of transactions continuing to increase.

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