Bahrain’s luxury real estate market set to hit $376 million by 2029

TDT | Manama

The Daily Tribune - www.newsofbahrain.com

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Bahrain’s high-end real estate market is projected to rise from $279.82 million in 2024 to $376.39 million by 2029, reflecting an annual growth rate of 6.11%.

This growth is driven by increasing demand from Gulf buyers and foreign investors, alongside steady interest in upscale rental real estate.

Despite stable capital values across the broader housing sector, an oversupply of properties has dampened the market in recent years, according to Mordor Intelligence.

However, demand for luxury villas and premium properties remains strong, particularly among expatriates, retirees, and foreign buyers attracted to Bahrain’s secure environment, reasonable cost of living, and diverse community.

Values

Real estate firms have observed a slight decrease in values, with apartment and villa prices dropping by 1.2% and 2.6%, respectively, in early 2022.

Foreigners are restricted to buying in designated freehold areas, such as Durrat Al Bahrain, Reef Island, and Amwaj Islands.

With approximately 9,000 units expected in Diyar Al Muharraq by 2026, some are concerned about the potential pressure on rental prices.

Major developments like the Golden Gate Towers, Oryx Bahrain Bay, and Paramount Tower are expected to add over 4,000 luxury units to the market in the coming years, potentially impacting both sales and rental prices as these projects are completed.

Key players

The sector remains fragmented, with key players like Diyar Al Muharraq, Naseej, and Ithmaar Development Company leading large-scale projects.

Mergers and acquisitions are expected to increase, potentially spurring further growth and attracting more firms into Bahrain’s luxury property market.

Bahrain’s real estate sector continues to evolve, with a focus on sustainability, transparency, and forward-thinking policies that encourage investment.

The market is set to remain a strong draw for foreign buyers, particularly from the Gulf, Europe, and Asia.