Real estate market ‘making progress’

Bahrain’s real estate market is expected to perform well in 2023, with strong demand from both local and international buyers.

ASK Real Estate’s analysis of the second quarter of 2023 predicts that the market will continue to grow in the third and fourth quarters of this year, after posting robust numbers in the first half.

The report noted that the total real estate transactions in the 2nd quarter of 2023 stood at 5,278, around 7pc higher when compared with 4,929 for the same period last year.

The transactions were worth BD299,348,822, which is about 23pc more than the figure seen in Q1 of 2023.

Key growth drivers are rising demand for hotels and other hospitality properties and increasing appetite for affordable housing, as the government addresses the housing shortage.

The real estate market in Bahrain is already showing signs of recovery, with transaction volumes and prices increasing in recent months, the report says.

The government is taking steps to further stimulate the market, such as providing incentives for foreign investors and developing new infrastructure projects.

Commenting on the findings, Karim Yazji, the chief executive at ASK Real Estate, said: “We are pleased to see the healthy growth of Bahrain’s economy in 2023 and the recovery of the real estate sector, thanks to the initiatives of the government that contributed to the development of a transparent and sustainable sector. These initiatives have encouraged investors and created more opportunities for new projects. The outlook for the real estate sector in Bahrain remains positive.”

The report noted that the construction costs in the region have been rising steadily over the past years due to a number of factors including the rising material costs.

It expects this trend to continue in 2023 and the coming years with construction costs in the Middle East seen rising by up to 10pc this year.

ASK Real Estate also notes that rentals in Bahrain have remained stagnant in the past 3 years as a result of a number of factors including the increasing supply of investment properties.

Construction of new residential and commercial properties has outpaced demand in recent years, thus it is anticipated to see an increase in demand for properties, which will lead to higher rents.

Source: https://www.gdnonline.com/Details/1287323/Real-estate-market-%E2%80%98making-progress%E2%80%99