Bahrain Property Market Report – Q2 2025 Summary
- Real estate transactions rose 12.8% year-on-year, reaching 2,844 deals valued at BHD 393.6 million.
- Economic growth stood at 2.7% in Q1 2025, with full-year GDP expected to expand 3.5%, driven by finance, manufacturing, and services.
- Building permits totaled 477, led by the Northern (38%) and Capital (30%) Governorates, signaling strong development activity.
- Office rents remained stable (BHD 4–7/sqm) amid steady demand from financial and professional service sectors.
- Industrial and logistics demand increased, supported by Bahrain’s growing e-commerce market, forecasted to reach BHD 590 million by 2027.
- Hospitality performance improved with occupancy up 6%, ADR up 7%, and RevPAR up 14%, boosted by Formula 1 and major events.
- Investment focus shifted toward affordable housing, mixed-use projects, and sustainable infrastructure.
- Government reforms—including expanded foreign ownership, digital land registration, and RERA updates—are enhancing transparency and investor confidence.
- Outlook for H2 2025 remains positive, supported by off-plan developments, housing initiatives (Mazaya, Tas’heel Plus), and infrastructure megaprojects like the Bahrain Metro and King Hamad Causeway.
Bahrain’s real estate sector recorded strong growth in Q2 2025, reflecting continued investor confidence and robust non-oil economic performance.
Property transactions rose 12.8% year-on-year to 2,844 deals, with total transaction value increasing 10.5% to BHD 393.6 million. Land and residential sales dominated activity, while the Northern and Capital Governorates led new building permits, totaling 477.
The Bahraini economy expanded 2.7% in Q1 2025 and is forecast to grow 3.5% for the year, driven by the financial, manufacturing, and service sectors. Inflation remains low at 1%, and continued non-oil diversification supports economic stability despite a high debt-to-GDP ratio.
In the sectoral breakdown:
- Office sector rents remained stable between BHD 4–7 per sqm, with strong demand from financial and professional services.
- Retail properties are steady (BHD 9–18 per sqm) despite pressure from e-commerce growth.
- Industrial real estate saw rising demand for logistics and warehousing, supported by Bahrain’s growing e-commerce market, projected to reach BHD 590 million by 2027.
- The hospitality sector performed exceptionally well, with occupancy up 6%, ADR up 7%, and RevPAR up 14%, boosted by major events such as the Formula 1 Grand Prix and government tourism initiatives.
Investment trends in Q2 2025 focused on affordable housing, mixed-use developments, and infrastructure projects such as the $3B Bahrain Metro, $5B King Hamad Causeway, and $6B Bapco modernization.
Ongoing policy reforms, including foreign ownership expansion, digital land registration, and RERA regulatory updates, continue to enhance transparency and attract foreign investment.
The market outlook for Q3 and Q4 2025 remains positive, supported by off-plan developments, government housing programs like Mazaya and Tas’heel Plus, and strong demand from local and international investors. Bahrain’s real estate, tourism, and infrastructure sectors are expected to drive growth through the end of 2025.
