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Bahrain's real estate sector rebounds; $1.9bln transactions recorded in 2020

March 31, 2021
real estate

Despite the challenges posed by Covid-19 pandemic, Bahrain’s real estate sector rebounded in the third and fourth quarter of 2020 to close the year with transactions worth $1.9 billion (717.4 million Bahraini dinars).

Real estate deals rose by 14 percent and 20 percent in third and fourth quarters of 2020 respectively, Bahrain Economic Development Board (EDB) said in a statement.

It said the value of ongoing mixed-use major real estate projects, mainly Eagle Hills Marassi Al Bahrain, Diyar Al Muharraq, Dilmunia and Bahrain Bay, were worth over $12 billion.

The statement said National Real Estate plan for 2021-2024 is set to further increase the sector’s contribution to the national economy as part of continued economic diversification efforts.

The plan includes five initiatives and 17 projects, including laws and regulations, long-term plans and operational initiatives for developing the real estate sector, the statement said.

EDB’s Executive Director - Investment Origination Ali Al Mudaifa described the bounce back as a “testament to the Kingdom’s dedication towards economic growth.”

“Seeing these projects come to life has been a rewarding experience and we are confident that Bahrain’s real estate sector will continue to grow in the coming years,” he said.

In December 2020, property consultancy Cavendish Maxwell said in a report oversupply continues to put pressure on residential and offices sectors. Higher vacancy rates coupled with the completion of residential projects under construction are factors increasingly pressuring landlords to attract tenants, the report said. In the offices space, it continued, certain pockets have displayed signs of recovery with rents either holding steady or declining at a slower pace. The report also noted that retail projects, new and completed, were designed to align with the rising popularity of e-commerce versus traditional retail.