Commercial Real Estate - Bahrain

  • Bahrain
  • The Commercial Real Estate market market in Bahrain is expected to reach a value of US$21.26bn by 2024.
  • It is projected to grow at an annual growth rate (CAGR 2024-2028) of 2.80%, resulting in a market volume of US$23.74bn by 2028.
  • When compared globally, the United States is expected to generate the highest value in the Real Estate market, reaching US$25,370.00bn by 2024.
  • Bahrain's commercial real estate market is experiencing a surge in demand from international investors due to its strategic location in the Gulf region.

Key regions: United Kingdom, China, Asia, France, Europe

 
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Analyst Opinion

Bahrain, a small island nation in the Persian Gulf, is experiencing significant developments in its Commercial Real Estate market. With its strategic location, business-friendly environment, and growing economy, Bahrain is attracting both domestic and international investors.

Customer preferences:
Investors in Bahrain's Commercial Real Estate market are increasingly looking for properties that offer high returns on investment. They are particularly interested in office spaces in prime locations that can attract multinational companies and startups. Additionally, there is a growing demand for retail spaces in popular shopping districts and industrial properties in areas that offer easy access to transportation and logistics hubs.

Trends in the market:
One of the key trends in Bahrain's Commercial Real Estate market is the development of mixed-use projects. These projects combine residential, commercial, and retail spaces in a single development, creating vibrant and integrated communities. This trend is driven by the desire for convenience and the increasing popularity of live-work-play environments. Another trend in the market is the rise of flexible office spaces. With the growth of the gig economy and remote work, there is a growing demand for flexible and shared office spaces. These spaces offer cost-effective solutions for startups and small businesses, as well as the flexibility to scale up or down as needed.

Local special circumstances:
Bahrain's Commercial Real Estate market is influenced by its status as a regional financial hub. The presence of major financial institutions and multinational companies creates a demand for high-quality office spaces. Additionally, Bahrain's tourism industry is growing, leading to increased demand for hotel and hospitality properties.

Underlying macroeconomic factors:
Bahrain's Commercial Real Estate market is benefiting from several macroeconomic factors. The government has implemented economic reforms to diversify the economy and attract foreign investment. This has led to increased business activity and a growing demand for commercial properties. Furthermore, Bahrain's strategic location in the Gulf region and its well-developed infrastructure make it an attractive destination for businesses looking to expand their operations in the Middle East. In conclusion, Bahrain's Commercial Real Estate market is experiencing significant developments driven by customer preferences for high returns on investment, mixed-use projects, and flexible office spaces. The market is also influenced by Bahrain's status as a regional financial hub and its growing tourism industry. These trends are supported by underlying macroeconomic factors such as economic reforms and Bahrain's strategic location.

Methodology

Data coverage:

Figures are based on value of commercial real estate.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. 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 market, for example, exponential trend smoothing.

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.

Overview

  • Value
  • Analyst Opinion
  • Methodology
  • Key Market Indicators
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