Demand for rental properties remains high, mainly in expat-friendly locales, the report said
The total value of real estate transactions in Bahrain rose 1.9% to 814 million Bahraini dinars ($2.16 billion), supported by a 5.1% rise in volume in the first nine months of 2023, Knight Frank said in its latest report, “Bahrain Real Estate Market Review – Autumn 2023.”
The higher growth in transaction volumes compared to transaction values suggests a decline in prices, Faisal Durrani, Partner – Head of Research, said in a report.
“Villa developments have continued to captivate buyers, with average sales prices in the mid-end segments holding steady at BD 625 per square meter. However, the cost of credit has affected premium developments, particularly apartments, which saw a 2% decline to BD 665 per square meter,” he added.
Expatriates, constituting an estimated 52.6% of the total population by 2022, continue to be a driving force in Bahrain’s rental market.
Demand for rental properties remains high, particularly in expat-friendly locales such as Juffair, Amwaj Islands and Al Seef.
However, the performance of the rental market in Bahrain remained subdued over the last 12 months, with both villas and apartments continuing to face downward pressure due to apparent supply-demand imbalance.
Average villa rents decreased marginally by 1% in Q3 across the major neighbourhoods, while average apartment rents fell by 2.2% over the same period.
However, newly delivered quality assets are achieving higher rates in Diyar Al Muharraq, Dilmunia and Riffa, the report noted.
Source: Zawya
