Q1 2026

01Overall market

Q1 2026 delivered a 29% year-on-year rebound in transaction volumes to 6,418 deals, the strongest first quarter since 2022. Total value held essentially flat at BHD 283.86 million, so the surge was driven by broader participation rather than price inflation. Office and retail rents and occupancy stayed stable.

02The economy

Bahrain's real GDP grew about 3.5% in 2025, with roughly 3.3% forecast for 2026, led by the non-oil economy. FDI stock reached BHD 17.7 billion by end-2025. Regional GCC markets stayed active, giving Bahrain a stable backdrop.

03Residential

The residential market stayed firm, with the Capital and Muharraq Governorates leading rents. Premium waterfront districts such as Bahrain Bay and Reef Island held values of BHD 900 to 1,400 per sqm, while the mid-market remained active.

04Commercial

Commercial rents were stable and location-driven. Retail led in the Capital at around BHD 11 per sqm, with office space near BHD 6, while the other governorates stayed competitive for cost-conscious occupiers.

05Industrial

Warehouse rents held steady at BHD 2.6 to 3.1 per sqm, with Tubli and Salmabad commanding the highest rates on continued logistics demand.

06Land

Land rates were broadly stable across zoning classes, with premium BA-zoned plots in the Capital leading at BHD 72 per sqm. The price gradient reflects built-up-area allowances, which rise from residential zones up to BA zones.

07Hospitality

Hotel and tourism KPIs are unavailable for Q1 2026. STR observations had not been confirmed at time of publication, and March 2026 data was cancelled following regional developments. The series is expected to return in the Q2 2026 report.

08Bahrain standing tall

If the first quarter of 2026 tested the Kingdom, it also revealed its character. Regional pressure weighed on the Gulf, yet Bahrain absorbed the shock and kept its economy moving. Capital values held firm and the mid-market stayed active. The market repriced nervousness, not assets.

Bahrain's momentum, built on a landmark 2025, did not unravel under stress.