Savills has unveiled its latest analysis of Bahrain’s property market for Q4 2024, shedding light on key trends, challenges, and emerging opportunities in the Kingdom’s real estate landscape.
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.
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.
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. 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.
Locations such as Diyar Al Muharraq, Manama Seafront, and Juffair continue to be popular hotspots for property transactions, maintaining strong performance year on year. 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.
“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.”
Hashim Kadhem, Head of Professional Services – Bahrain, Savills Middle East
Furthermore, the Urban Planning and Development Authority’s decision to expand the residential-use area by 208,000 sqm is a clear step toward addressing Bahrain’s housing demand.
Residential 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.
