Bahrain's property market demonstrated resilience in the first quarter of 2024, according to a report by real estate services firm Savills. The report indicates a continued trend of stability observed in the latter half of 2023. While there were slight declines in the value of transactions and high-end villa capital values, other sectors like apartments and commercial office spaces showcased positive signs.
The analysis revealed that the number of sales transactions reached 6, 124 in the first quarter, representing a marginal 3% year-on-year dip. This indicates a continued interest in Bahraini properties despite the slight decline. Furthermore, the total value of transactions in 2023 witnessed a 1. 2% decrease to reach $2. 92 billion compared to the previous year. However, this decrease is balanced by a significant 24. 1% growth in the volume of transactions throughout 2023 compared to 2022. This suggests that buyers are entering the market, likely opting for more affordable properties.
The report also highlights positive trends in specific property segments. Capital values for apartments, for instance, exhibited a slight increase of 0. 3% in the first quarter of 2024 compared to the previous quarter. This indicates a modest rise in apartment prices, suggesting potential growth in this sector. Conversely, high-end villas witnessed a 4. 5% decline in capital value during the same period compared to the first quarter of 2023. This dip could be due to a correction in the luxury property market or a shift in buyer preferences towards more affordable options.
Bahrain's commercial office space market also displayed stability. The report indicates a quieter period in the first quarter, with businesses opting to renew leases in existing high-grade office spaces. This suggests continued confidence in the commercial sector and a wait-and-see approach from businesses regarding new office spaces. The report attributes the stable capital values in Grade A properties to an increase in supply, indicating a growing office space market.
Overall, the Savills report paints a picture of a Bahrain property market that is experiencing stability amidst minor adjustments. The slight decline in transaction values and high-end villa prices might suggest a period of correction or a shift in buyer preferences. However, the positive performance in apartment capital values and the stability in the commercial office sector indicate underlying strength in the market. The continued growth in transaction volume throughout 2023 further reinforces this notion. As Bahrain's economy recovers and new fiscal reforms take effect, the real estate sector is expected to maintain its stable trajectory, with potential for growth in certain segments.