Bahrain real estate values to grow but at slower pace – Savills
Bahrain residential real estate sales values have continued to grow in the first quarter of 2023 but at a slower pace than in 2022.
Mid-end villa developments in the country increased in value by 5.2% year-on-year (YoY).
Sales prices reached 603 Bahraini dirhams ($1,603.72) per sq.m. compared to BHD 573 per sq.m. in Q1 2022.
However, rising credit costs have impacted demand for high-end or premium developments, with high-end apartment values dropping by 1.3% quarter-on-quarter, according to a market update by Savills.
In the rental market, demand for low-end and mid-end villas remained strong as end-users limited their expenses owing to the current global economic landscape, Savills said.
Prices are now 18.5% higher than Q1 2022 and are estimated at BHD 800 per month.
In the office space, rental values in the mid-end segment have increased by 15% YoY
However, high-end rental values remained stable across 90% of the Grade A stock tracked by Savills, but on average, rents dropped by 1.5% on a quarterly comparison and 2.1% on an annual comparison.
The sales market reflected the sentiment of the rental market with mid-end capital values experiencing YoY growth of 4.6%, largely attributed to reduced available stock in the sub-sector, the real estate company added.
The Survey and Land Registration Bureau data showing that the value of real estate transactions increased by 17% YoY in Q1 2023 to BHD 243.1 million, Savills said.
