Bahrain’s real estate sector is poised for significant growth in 2025, driven by a confluence of factors including major infrastructure projects and investor confidence, according to Karim Yazji, chief executive of ASK Real Estate.
Speaking at a media briefing yesterday, Mr Yazji said: “The real estate sector in Bahrain achieved remarkable success and sustainable growth in 2024. In 2025, we expect this positive momentum to continue, bolstered by the launch of new real estate projects and the adoption of national strategies to attract investments and drive growth.”
A report by ASK Real Estate presented during the briefing revealed that while transaction volumes dipped by 18.23 per cent to 4,206 in the third quarter of 2024, the total transaction value surged by 17.92pc to BD320.71 million, indicating a shift towards higher-value properties. This suggests a continued appeal for premium properties within the market.
Land, residential, commercial, and industrial rates remained stable, suggesting a balanced supply and demand dynamic. This stability is expected to boost investor and developer confidence.
The hospitality sector saw positive momentum with occupancy rates inching up to 51.17pc. Average Daily Rate (ADR) increased by 2.90pc to BD63.13, while Revenue Per Available Room (RevPAR) rose by 3.56pc to BD32.29. These figures reflect Bahrain’s growing tourism appeal.
Highlighting the transformative role of infrastructure in the sector’s prosperity, Mr Yazji noted: “Infrastructure projects are crucial to the success of real estate developments. For instance, real estate in Diyar Al Muharraq, Amwaj, and Dilmunia Islands has seen increased interest from investors and end-users following the opening of the Muharraq Ring Road.”
He emphasised the impact of other key infrastructure projects, such as the expansion of Al Fateh Street and Janabiya, along with the tender announcement for the development of Riffa Street. “These vital road projects not only support various real estate developments but also align with Bahrain’s urban expansion, enhancing connectivity and creating opportunities for sustained growth in the real estate sector,” he added.
Mr Yazji highlighted the initiatives of banks in Bahrain to offer affordable housing financing, emphasising the critical role such financing plays in driving the overall development of the sector.
He also discussed the advancements in Bahrain’s real estate legislation, including a recent law mandating property owners and real estate developers to establish infrastructure for their projects.
The chief executive of ASK Real Estate also highlighted the hospitality sector as a key area experiencing remarkable growth in Bahrain. The kingdom has recently seen the opening of several prominent hotel establishments, including the Conrad Bahrain Financial Harbour Hotel, Onyx Rotana Hotel, and Hawar Resort.
Mr Yazji further emphasised the importance of Bahrain’s structured tendering and auction processes, describing them as foundational pillars of the real estate sector’s growth.
“The real estate sector is poised to play a pivotal role in Bahrain’s economic growth,” stated Mr Yazji. “The kingdom’s strategic focus on luxury real estate, investor-friendly policies, and continuous infrastructure enhancements have strengthened the resilience of the real estate market and supported its steady growth this year.”
According to studies conducted by ASK Real Estate, 2025 is projected to see a surge in demand for high-quality and luxury projects, continuing to attract affluent individuals, entrepreneurs, and investors.
“We anticipate sustained growth in real estate demand throughout 2025, fuelled by the confidence of residents and foreign investors in the sector. Many are choosing Bahrain as a destination to reside, conduct business, or invest in property,” Mr Yazji added.
The real estate expert concluded by emphasising Bahrain’s competitive residential unit prices compared to economically similar countries. This advantage, coupled with attractive incentives from real estate developers and marketing firms, along with accessible financing options provided by banks, is expected to further invigorate the market and support sustained growth in the real estate sector.
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