Residential Real Estate - Bahrain

Bahrain

The Residential Real Estate market market in Bahrain is projected to reach a value of US$63.21bn in 2024.
It is expected to exhibit an annual growth rate (CAGR 2024-2028) of 4.26%, leading to a market volume of US$74.68bn by 2028.
When compared globally, it is noteworthy that China will generate the highest value in the Real Estate sector, amounting to US$117.40tn in 2024.
Bahrain's residential real estate market is experiencing a surge in demand due to its favorable tax policies and attractive investment opportunities.

Key regions: Europe, Asia, Australia, United States, Germany

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Analyst Opinion

The Residential Real Estate market in Bahrain is experiencing significant growth and development in recent years. Customer preferences have shifted towards modern and luxurious properties, leading to an increase in demand for high-end residential units. Additionally, the market is influenced by local special circumstances and underlying macroeconomic factors. Customer preferences in the Bahrain Residential Real Estate market have evolved in response to changing lifestyles and increasing affluence. Customers are now seeking properties that offer modern amenities, spacious living areas, and state-of-the-art facilities. The demand for high-end residential units, such as luxury apartments and villas, has surged as buyers prioritize comfort and luxury. This shift in preferences has led to the development of upscale residential projects that cater to the needs of affluent buyers. The market is also influenced by local special circumstances. Bahrain is known for its thriving tourism industry and has become a popular destination for expatriates and foreign investors. This has created a demand for residential properties from both local and international buyers. The government has implemented policies to attract foreign investment, further fueling the growth of the Residential Real Estate market. Additionally, the availability of financing options and favorable mortgage rates have made it easier for buyers to invest in the market. Underlying macroeconomic factors have also contributed to the development of the Residential Real Estate market in Bahrain. The country's strong economic growth and stable political environment have attracted investors from around the world. The government has implemented initiatives to diversify the economy, with a focus on sectors such as tourism, finance, and real estate. This has led to an increase in job opportunities and a growing population, driving the demand for residential properties. Furthermore, Bahrain's strategic location in the Gulf region has made it an attractive destination for businesses and individuals. The country serves as a gateway to the Middle East, with easy access to neighboring countries. This has resulted in an influx of expatriates and foreign workers, creating a demand for housing. In conclusion, the Residential Real Estate market in Bahrain is experiencing growth and development due to shifting customer preferences, local special circumstances, and underlying macroeconomic factors. The demand for high-end residential units, the influx of expatriates, and the government's initiatives to attract foreign investment have all contributed to the market's expansion. With favorable financing options and a stable political environment, Bahrain remains an attractive destination for real estate investment.

Methodology

Data coverage:

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

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, 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:

Data is modeled using current exchange rates. 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.