Bahrain Property Market Overview

Prices continue to fall in sales and rental markets.

The real estate market has witnessed a number of changes in Bahrain. With more and more development projects taking shape, the implementation of RERA and regulation in the market, as well as the changing geopolitical nature of the region, there has been a shift in prices. However, the market has seen increased activity, and a number of transactions continue to take place. While new and emerging areas are starting to gain more popularity in Bahrain, the top searched areas in the country remain somewhat unchanged, with Al Juffair being the top searched area when it comes to apartment rentals. Saar remains the number one area for villas for rent. Al Juffair once again, topped the list for top searched areas for apartments for sale, while Amwaj Islands tops the list as the number one searched area for villas for sale. In this issue of Trends, we will be displaying actual asking prices for rental units, as opposed to average price, giving readers a better understanding and more accurate insight into the prices of the market. Prices for sale remain at the average price per square metre. The general trend for prices in both the Bahrain rental and sale markets have seen an overall decline across all four main governorates, with the exception of the Capital Governorate, which recorded an increase in the villa sale market only.

Properties for rent:
Apartments:
When it comes to apartment rentals, prices in all four Governorates have declined, with Al Muharraq Governorate and the Southern Governorate affected the most, at 2.4% and 12.7% respectively, when comparing January – June 2018 and July – December 2018, as affordable units become more appealing to tenants. Apartment prices in Al Galali recorded a minor decrease from BHD 350 to BHD 346, and prices for apartment rentals in Al Busaiteen also decreased from BHD 475 to BHD 450. Known for being areas that offer more of a mix between affordable and higher priced properties, Reef Island, Tubli and Um Al Hasam, all located in the Capital Governorate, as well as Al Riffa (Southern Governorate) were the only four locations that recorded an increase in price between January – June 2018 and July – December 2018. Hoora, located in the Capital Governorate, recorded the most significant decline, dropping from BHD 446 to BHD 393 which is largely due to the emergence of newer properties and as well, more affordable units in other areas in the country.

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Villas:
Demand for affordable properties is on the rise, and prices for villas for rent across all four Governorates have continued to decline, with the most significant drop taking place in the Capital Governorate, at 4.2%. Prices in the Southern Governorate remained the most stable, with only a 0.5% change, when comparing January – June 2018 and July – December 2018. Jannusan, located in the Northern Governorate had the most significant drop in price during that time, falling from BHD 1,192 to BHD 980, which is still considered to be somewhat of a higher price, compared to other areas such as Saar, Mahooz and Al Hidd. Adliya also recorded a price change from BHD 1,167 to BHD 1,094 in asking price for villa rentals, mainly due to lack of stock, as the area is known more for offering apartments. Barbar, known for its lavish villas, also recorded a price decrease from BHD 904 to BHD 832

Properties for sale:
Apartments:
Once again, we can see a declining price trajectory recorded for the four Governorates, with the most significant decrease recorded in the Southern Governorate at 4%, when comparing January – June 2018 and July – December 2018. The Capital, Muharraq and Northern Governorates all recorded minor decreases which are under 2% for the same time period, as prices remain on the same trend. This is a good start for price regulation and transparency in the market, which RERA will be implementing. Known for villas over apartments, Al Muharraq recorded a significant price decrease from BHD 1,149 to BHD 986. Seef is another area where average prices per square metre decreased, from BHD 947 to BHD 921.

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For those looking for a more affordable investment, prices in Al Busaiteen have decreased from BHD 688 to BHD 661 when comparing January – June 2018 and July – December 2018, which could attract the interest of investors. Bahrain Bay is credited with rejuvenating the sale market in Bahrain, as it is offering a number of luxurious high-end properties in one of the countries newest freehold areas, which has prompted both local and regional investment. Bahrain Bay was one of the few areas to record an increase in average price per square metre during that period, with prices increasing from BHD 1,312 to BHD 1,377 which is mainly due to the high number of development projects that are nearing completion in the area.

Villas:

There has been increased interest in areas within the Capital Governorate when it comes to finding villas for sale, with locations such as Reef Island and Seef offering a number of high end homes for sale. And with the exception of the Capital Governorate, which recorded a price increase of 6.8% for villas for sale between January – June 2018 and July – December, the three other Governorates recorded a decrease in price, with the Northern Governorate decreasing 3.2% in price, which is the most significant drop in price for that time period. More interest can be seen in Bu Quwah (Northern Governorate), which was the only neighbourhood which recorded a slight increase in average price per square metre, increasing from BHD 577 to BHD 582, while all other locations recorded price reductions. A’ali (Northern Governorate) recorded the most significant price decrease, from BHD 605 to BHD 468 when comparing January – June 2018 and July – December. A’ali is known for offering affordable villas for sale, and as other areas in the country dropped their prices, we have seen further reductions in A’ali. Galali (Muharraq Governorate) is another area which recorded a significant decrease in average price per square metre, which decreased from BHD 684 to BHD 602 in the same time frame.

Information provided by Property Finder’s Trends Report from propertyfinder.bh