Bahrain saw an uptick in real estate transaction volumes, with sales totalling 9,362 in Q4-2023 as per Survey and Land Registration Bureau (SLRB) data, which a new report finds “encouraging”.
In its Bahrain Real Estate Market Review Q4 2023, commercial real estate services and investments firm CBRE said this marks an increase of 65.4 per cent year-on-year, and an increase of 82pc quarter-on-quarter compared to Q3-2023.
Real estate transaction value, however, is reported as being BD1.07 billion, marking a 1.2pc decrease on the same period of 2023.
Looking at Bahrain’s office sector, rental rates remained stable in 2023, with Grade A rents sitting at BD5.98 per sqm per month on average.
Vacancy rates have stabilised and seen a small improvement based on growth in the workforce as well as reduced development and new additions of Grade A properties to the market.
There are a number of new office buildings scheduled to open in 2024, including Sayacorp Tower and Seef Boulevard. Should these openings go ahead as scheduled, the total supply of office space in Bahrain will increase by 1.1pc in 2024.
In the residential sector, average apartment sales rates across the kingdom grew by 2.5pc from 2022 to 2023.
Villa sales rates based on title deed area declined marginally by 0.44pc YoY in 2023 overall.
In the rental market, mid- to high-end quoted apartment rates fell by 1.7pc in the year to Q4 2023. Over the same period, mid- to high-end villa rates remained relatively stable, witnessing only a marginal 0.1pc decline.
Within the hospitality sector, key performance indicators demonstrated improvement in 2023.
STR Global’s data shows that average hotel occupancy in Manama was up by 5.1pc compared to 2022.
Over this period, although Manama’s ADR fell by 2.7pc to an average of BD61, its RevPAR increased by 1.9pc.
Bahrain as a whole performed similarly, with its occupancy rate increasing by 4.4pc and ADRs falling by 2.2pc, resulting in RevPARs increasing by 2.1pc.
December saw the opening of Bahrain’s first Raffles property. The converted property, previously Al Areen Palace & Spa, offers 78 private pool villas ranging from one to three bedrooms plus five F&B outlets.
In the retail sector, CBRE’s biannual retail occupancy survey for H2 2023 showed marginal growth for the third consecutive period.
The second half saw the average occupancy increase by 1 percentage point across the firm’s set of 20 tracked malls in Bahrain.
Average tracked rental rates declined by over 4pc in 2023 and it is anticipated that the increasing supply, across all segments from neighbourhood plazas to destination malls, will increase pressure on landlords to provide more competitive commercial terms in the coming period.
CBRE in Bahrain director for advisory and transactions Heather Longden said: “It is encouraging to see the increase in volume of transactions for 2023, despite the decline in total value. While performance is generally muted across sectors, the residential apartment segment has seen an uptick in average sales rates achieved for 2023, which is indicative of the quality of supply that continues to be developed. Hotel performance has shown signs of further recovery with increased occupancy rates. We anticipate a challenging time ahead for the office and retail sectors, however, there will be opportunity for landlords providing quality product and service, with competitive commercial terms to outperform.”
avinash@gdnmedia.bh
&uuid=(email))