Bahrain's property market posts steady growth in 2024

07/03/2025 03:24 AST

Bahrain's property market witnessed a year of steady progress in 2024 with its residential prices having shown stable growth for the year, according to Savills, the global real estate services provider.

The kingdom's high-end apartments saw a year-on-year price increase of 1.4%, while the villa prices remained stable.

Bahrain's economy continues to demonstrate resilience, with GDP growth of 2.1% in 2024. This positive trajectory is largely driven by the non-oil sectors, particularly manufacturing and financial services, which together account for 37% of the country's GDP, according to Savills, the global real estate services provider.

With the kingdom focusing on economic diversification, plans for new industrial zones and the development of a greenfield airport are set to attract both local and international investment, providing a solid foundation for further economic and market growth, it said.

The real estate market in Bahrain has benefited from demographic growth, improved affordability, and supportive government initiatives. The introduction of long-term residency options, such as the Golden Visa, has been particularly instrumental in boosting investor confidence, especially among high-net-worth individuals keen to explore opportunities in the region, stated Savills in its Q4 2024 analysis of Bahrain's property market.

This has led to an increase in sales activity, particularly in the residential market, as more expatriates opt to purchase properties rather than rent, further stimulating demand, it added.

Shedding light on key trends, challenges, and emerging opportunities in the kingdom's real estate landscape, Savills said the locations such as Diyar Al Muharraq, Manama Seafront, and Juffair continue to be popular hotspots for property transactions, maintaining strong performance year on year, said the property expert.

In response to growing demand, developers have increasingly launched projects that integrate residential, commercial, retail, and recreational spaces, providing buyers and investors with more comprehensive living environments, it added.

Furthermore, the Urban Planning and Development Authority's decision to expand the residential-use area by 208,000 sq m is a clear step toward addressing Bahrain's housing demand.

On the residential market, Savills said the prices in Bahrain have shown steady growth, with high-end apartments seeing a year-on-year price increase of 1.4%, while villa prices have remained stable.

This indicates a strengthening of demand for premium properties, as more consumers seek modern developments equipped with high-end amenities. The increasing popularity of large, well-designed homes has been particularly evident in the rental market, where rental values rose by 23% across the Kingdom in 2024.

In particular, the Capital Governorate accounted for 48% of rental transactions, maintaining historical trends, it stated.

However, on the office and retail market, Savills said it faced some challenges throughout 2024, with limited demand and relatively flat rental growth despite new developments such as SayaCorp Tower entering the market.

The Future Generation Tower, scheduled for completion in 2025, may contribute to further market adjustments. On a more positive note, Bahrain's retail sector is showing signs of recovery, as luxury brands like Rolex and Giorgio Armani have opened new stores in Marassi Galleria, driving foot traffic and demand in the retail space, it stated.

On the industrial sector, Savills said Bahrain's focus on manufacturing continues to drive demand for warehouse space.

Larger warehouse spaces have seen a slight increase in rental rates, with a 2.1% year-on-year growth, while rates for smaller units have remained stable, stated the property expert.

The industrial market remains integral to Bahrain's economic diversification strategy, and further investments in infrastructure are expected to continue supporting demand for industrial space, it added.

Hashim Kadhem, the Head of Professional Services, Bahrain, Savills Middle East, said: "The Bahraini property market continues to show growth despite global economic uncertainties. With new infrastructure projects and government initiatives in place, Bahrain remains an attractive destination for both investors and residents."

"The growth in residential, retail, and industrial sectors highlights the Kingdom's evolving real estate landscape, and we expect this momentum to continue well into 2025," he added.