Real Estate - Bahrain

Bahrain

The Real Estate market market in Bahrain is expected to reach a value of US$84.48bn in 2024.
The residential segment dominates the market with a projected market volume of US$63.21bn in the same year.
It is anticipated that the market will experience an annual growth rate of 3.89% (CAGR 2024-2028), resulting in a market volume of US$98.42bn by 2028.
In comparison to other countries, China is projected to generate the highest value in the Real Estate market sector, with US$135.70tn in 2024.
The real estate market in Bahrain is experiencing a surge in demand for luxury waterfront properties due to the country's coastal location and high-end tourism industry.

Key regions: United States, China, Japan, Germany, United Kingdom

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Analyst Opinion

The Real Estate market in Bahrain has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Bahrain have shown a strong preference for real estate properties that offer a luxurious and modern lifestyle. This includes high-end residential properties with state-of-the-art amenities, such as swimming pools, gyms, and 24-hour security. Additionally, there is a growing demand for commercial properties, particularly in the retail and hospitality sectors, as Bahrain continues to attract international businesses and tourists.

Trends in the market: One major trend in the Bahraini real estate market is the increasing focus on sustainable and eco-friendly properties. Developers are incorporating green building practices and technologies to meet the growing demand for environmentally conscious living spaces. This trend is driven by both customer preferences for sustainable living and the government's commitment to promoting green initiatives. Another trend is the rise of mixed-use developments, which combine residential, commercial, and leisure spaces in a single project. These developments are designed to create vibrant and self-sustaining communities, where residents can live, work, and socialize in one location. The popularity of mixed-use developments is driven by the convenience and efficiency they offer, as well as the desire for a more integrated and connected lifestyle.

Local special circumstances: Bahrain's strategic location in the Arabian Gulf and its status as a regional financial and business hub have contributed to the growth of its real estate market. The government has implemented various initiatives to attract foreign investment, including the introduction of favorable tax policies and the establishment of free trade zones. These measures have made Bahrain an attractive destination for both local and international investors, driving demand for real estate properties.

Underlying macroeconomic factors: Several macroeconomic factors have played a role in the development of Bahrain's real estate market. The country's stable political environment and strong regulatory framework have instilled confidence in investors, encouraging them to invest in the real estate sector. Additionally, Bahrain's growing population, fueled by immigration and a high birth rate, has increased the demand for housing and commercial spaces. The government's commitment to diversifying the economy away from oil has also had a positive impact on the real estate market. Bahrain has been investing heavily in sectors such as finance, tourism, and technology, attracting businesses and professionals from around the world. This has created a need for additional office spaces and residential properties, further driving the growth of the real estate market. In conclusion, the Real Estate market in Bahrain has experienced significant growth and development due to customer preferences for luxurious and modern properties, trends towards sustainability and mixed-use developments, local special circumstances such as Bahrain's strategic location and favorable investment climate, and underlying macroeconomic factors such as a stable political environment and government initiatives to diversify the economy.

Methodology

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.