Q2 2025

01Overall market

Q2 2025 recorded strong growth: transactions rose 12.8% year on year to 2,844 deals and total value increased 10.5% to BHD 393.6 million, led by land and residential sales. New building permits reached 477, led by the Northern (38%) and Capital (30%) Governorates.

02The economy

The economy expanded 2.7% in Q1 2025 and was forecast to grow 3.5% for the year, driven by finance, manufacturing and services, with inflation low at 1%.

03Sector performance

Office rents held steady at BHD 4 to 7 per sqm and retail at BHD 9 to 18. Industrial and logistics demand rose with e-commerce, projected to reach BHD 590 million by 2027. Hospitality was the standout, boosted by the Formula 1 Grand Prix.

04Investment and reforms

Capital flowed into affordable housing, mixed-use projects and infrastructure, including the $3B Bahrain Metro, $5B King Hamad Causeway and $6B Bapco modernisation. Expanded foreign ownership, digital land registration and RERA updates kept strengthening investor confidence.

05Outlook

The outlook for H2 2025 stayed positive, supported by off-plan developments and housing programmes such as Mazaya and Tas'heel Plus, with strong local and international demand.

A quarter of momentum: transactions up 12.8%, hospitality surging and reforms deepening investor confidence.