Bahrain Luxury Residential Real Estate Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022-2027)

The Bahrain Luxury Residential Real Estate Market is segmented by Type (Apartments and Condominiums, Villas, and Landed Houses), and by Key Cities (Manama, Muharraq, Juffair, and the rest of Bahrain). The report offers market size and forecasts for the Bahrain Luxury Residential Real Estate Market in value (USD billion) for the above-mentioned segments.

Market Snapshot

Bagrain Luxury Residential Real Estate
Study Period: 2018-2027
Base Year: 2021
CAGR: >5 %

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Market Overview

The Bahrain luxury residential real estate market is expected to register a CAGR greater than 5% during the forecast period (2022 - 2027).

The looming effects of the pandemic continue to significantly impact the market. However, there has been a rise in sale transactions and rental deals, as investors and those looking to purchase a property are still taking advantage of lowered prices in the sale market. The price shifts in the rental market have also allowed many to move homes; some have upgraded to villas, especially those with facilities such as pools and playgrounds, while others were eager to take advantage of affordable prices for smaller units, such as studios.

The luxury residential real estate market in Bahrain continues to witness a high demand with signs of increased residential project developments and buyers in the market. According to the data provided by Property Finder Bahrain, there has been an upward growth in the local luxury residential real estate market.

The 40-story building will be the first of its kind in Seef’s Water Garden City, offering new heights of residential luxury. It promises to be the first building in Bahrain that offers beach access as well as full sea views, with shopping malls, restaurants, and other points of interest within proximity. The luxurious residential building will include amenities such as a basketball court, gym, indoor and outdoor swimming pool, mini-golf course, spa facilities, a game room, kids’ playgrounds, and more.

According to Savills (Savills Bahrain offers a wide range of specialist services from financial and investment advice to valuation, planning, and property management), the occupier movement has been observed given the increase in supply by approximately 3,500 apartments and villa units in a short period. This will further intensify with a supply of 4,322 units over the next four years when projects such as Golden Gate Towers, Oryx Bahrain Bay, Paramount Tower, Harbour Row, and Amwaj Gateway are handed over.

Scope of the Report

Luxury residential real estate refers to properties that are exclusively designed for human occupation, which provide charmed and resort life with high-end amenities. The Bahrainluxury residential real estate market is segmented by type (apartments and condominiums, villas, and landed houses) and by key cities (Manama, Muharraq, Juffair, Riffa, and the Rest of Bahrain). The report offers market size and forecasts for the Bahrain luxury residential real estate market in value (USD billion) for the above-mentioned segments.

By Type
Condominiums and Apartments
Villas and Landed Houses
By Key Cities
Manama
Muharraq
Juffair
Rest of Bahrain

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Key Market Trends

Increase in Villa Rental Values Across Bahrain Drives the Market

Villa rentals remain very high in demand across Bahrain, and with so many units recently becoming available, prices have somewhat decreased. While prices also fluctuated in this segment, the shift in pricing was not as volatile as the apartment market, simply because the number of villas is lower than their counterpart.

Price shifts in Jannusan saw advertised prices decrease from BHD 1,000 to BHD 850 between January – June of 2020, to January – June of 2021, and from BHD 950 to BHD 900 in Saar in the same period.

The majority of other areas that offer villas for rent have recorded decreases in advertised median prices for this segment across the same time frame, such as Busaiteen (from BHD 680 per SQM to BHD 662 per SQM) and Riffa (from BHD 577 per SQM to BHD 488 per SQM) in the same time period. This is largely due to the general conditions of the market, as well as trying to create opportunities for buyers, who usually would consider investing in an apartment, as opposed to a villa, as a first investment.

Bahrain Residential Real Estate sector

Growing Population is Driving the Luxury Residential Real Estate Sector In Bahrain

The luxury residential sector has been witnessing a lot of speculative activity driven mainly by trading by Kuwaiti and Saudi investors. Land prices have appreciated by about 3 to 4 times. For example, land prices in high-end low, rise residential areas such as Saar and Budaiya have increased from BHD 2.5 to BHD 10 per sqft. In Busaytin, another residential area, prices have gone up from BHD 2 to a range of BHD 10-20 per sqft. In Manama, land prices are in the range of BHD 15-22 per sqft. In largely expatriate and middle-class areas such as Juffair, land that was selling for BHD 4 to BHD 5 per sqft is today selling at a range of BHD 25-37 per sqft.

Looking at the liquidity levels in the GCC region fostered by high oil prices and the high surpluses coming from the stock market, the trend of speculative activity by GCC investors buying into Bahraini land is expected to continue further. Demand for luxury residential properties has been increasing considering the increasing population growth and the influx of foreigners, not only in Bahrain but also from Saudi Arabia, who comes from across the King Fahd causeway. A lot of upscale luxury residential projects are in the pipeline. It is believed that the luxury residential sector in Bahrain has been saturated with high-profile commercial properties and luxury residential properties, leaving the country short of housing for low-income groups. It is believed that the real opportunity for the residential sector in Bahrain lies within low-end residential properties.

Luxury Residential Construction

Competitive Landscape

The Bahrain Luxury residential real estate market is fragmented with many players. Some of the major players in the market are Diyar Al Muharraq, Naseej, Durrat Khaleej Al Bahrain, Durrat Marina, and Ithmaar Development Company. The merger and acquisition activity in Bahrain is also expected to increase in the coming years, likely to increase luxury residential real estate development, thereby encouraging more companies to enter the market.

Recent Development

April 2022: Diyar Al Muharraq, the leading real estate development company in the Kingdom of Bahrain, announced the conclusion of the first edition of its Tumouh Program, which provided vocational training opportunities to Bahraini graduates, aiming to nurture their skills in the fields of engineering and real estate. The program consisted of a 6-month training period where trainees were equipped with the necessary tools and guidance and tasked with forming a comprehensive engineering plan. At the end of the program, the trainees presented the plan to the Chief Executive Officer (CEO) of Diyar Al Muharraq, Eng. Ahmed Ali Al Ammadi, in addition to several other executives from the Company.

December 2021: In the presence of His Excellency Dr. Khaled Abdel Ghaffar, the Minister of Higher Education and Scientific Research Egypt, signs a cooperation agreement with Naseej – the leading provider of digital transformation and knowledge management solutions in the Middle East, in which Naseej will install, operate, and provide technical support for the student management system for the group of modern universities in Egypt, namely: King Salman International University, Galala University, New Mansoura University, and El Alamein International University.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Current Market Scenario and Consumer Sentiments

    2. 4.2 Luxury Residential Real estate Buying Trends Socio-economic and Demographic Insights

    3. 4.3 Government initiatives and regulatory Aspects for the Luxury Residential Real estate Sector

    4. 4.4 Insights into Interest Rate Regime for General Economy and Real estate Lending

    5. 4.5 Insights into Rental Yields in the Luxury Residential Real Estate Market

    6. 4.6 Insights into Affordable Housing Support provided by Government and Public-Private Partnerships

    7. 4.7 Insights into Real Estate Tech and Startups Active in the Real Estate Segment (Broking, Social Media, Facility Management, and Property Management)

    8. 4.8 Impact of COVID-19 on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

    2. 5.2 Market Restraints/Challenges

    3. 5.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 5.3.1 Threat of New Entrants

      2. 5.3.2 Bargaining Power of Buyers/Consumers

      3. 5.3.3 Bargaining Power of Suppliers

      4. 5.3.4 Threat of Substitute Products

      5. 5.3.5 Intensity of Competitive Rivalry

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Type

      1. 6.1.1 Condominiums and Apartments

      2. 6.1.2 Villas and Landed Houses

    2. 6.2 By Key Cities

      1. 6.2.1 Manama

      2. 6.2.2 Muharraq

      3. 6.2.3 Juffair

      4. 6.2.4 Rest of Bahrain

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Market Overview

    2. 7.2 Company Profiles

      1. 7.2.1 Diyar Al Muharraq

      2. 7.2.2 Naseej

      3. 7.2.3 Durrat Khaleej Al Bahrain

      4. 7.2.4 Durrat Marina

      5. 7.2.5 Ithmaar Development Company

      6. 7.2.6 Manara Developments

      7. 7.2.7 Seef properties

      8. 7.2.8 Carlton Real Estate

      9. 7.2.9 ASK Real Estate

      10. 7.2.10 Arabian Homes Properties

      11. 7.2.11 House Me

      12. 7.2.12 Pegasus Real Estate*

    3. *List Not Exhaustive
  8. 8. MARKET OPPORTUNITIES AND FUTURE OF THE MARKET

  9. 9. DISCLAIMER

  10. 10. APPENDIX

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Frequently Asked Questions

The Bahrain Luxury Residential Real Estate Market market is studied from 2018 - 2027.

The Bahrain Luxury Residential Real Estate Market is growing at a CAGR of >5% over the next 5 years.

Diyar Al Muharraq, Naseej, Durrat Khaleej Al Bahrain, Durrat Marina, Ithmaar Development Company, Manara Developments, Seef Properties are the major companies operating in Bahrain Luxury Residential Real Estate Market .

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