According to Karim Yazji, CEO of ASK Real Estate, several reasons, including large infrastructure projects and investor confidence, will propel Bahrain’s real estate industry’s rise in 2025.
Speaking at a media briefing yesterday, Mr Yazji said: “The real estate sector in Bahrain achieved remarkable success and sustainable growth in 2024. In 2025, we expect this positive momentum to continue, bolstered by the launch of new real estate projects and the adoption of national strategies to attract investments and drive growth.”
While transaction numbers decreased by 18.23% to 4,206 in the third quarter of 2024, the total transaction value increased by 17.92% to BD320.71 million, according to a study from ASK Real Estate that was presented during the briefing. This suggests that there is a trend toward higher-priced homes. This implies that the market will continue to be attractive for high-end residences.
The stability of land, residential, commercial, and industrial rates points to a dynamic of supply and demand that is in balance. It is anticipated that this stability will increase developer and investor confidence.
With occupancy rates edging up to 51.17 percent, the hospitality industry enjoyed good momentum. Revenue Per Available Room (RevPAR) climbed 3.56 percent to BD32.29, while Average Daily Rate (ADR) increased 2.90 percent to BD63.13. These numbers demonstrate Bahrain’s rising popularity as a travel destination.
Highlighting the transformative role of infrastructure in the sector’s prosperity, Mr Yazji noted: “Infrastructure projects are crucial to the success of real estate developments. For instance, real estate in Diyar Al Muharraq, Amwaj, and Dilmunia Islands has seen increased interest from investors and end-users following the opening of the Muharraq Ring Road.”
He emphasised the impact of other key infrastructure projects, such as the expansion of Al Fateh Street and Janabiya, along with the tender announcement for the development of Riffa Street. “These vital road projects not only support various real estate developments but also align with Bahrain’s urban expansion, enhancing connectivity and creating opportunities for sustained growth in the real estate sector,” he added.
Mr. Yazji emphasized the efforts made by Bahraini banks to provide finance for affordable housing, highlighting the vital role that this type of funding has in propelling the sector’s overall growth.
He also talked about how Bahrain’s real estate laws have advanced, mentioning a new rule that requires property owners and developers to build infrastructure for their developments.
The CEO of ASK Real Estate also emphasized Bahrain’s hospitality industry, which is a vital sector that is expanding remarkably. The Conrad Bahrain Financial Harbour Hotel, Onyx Rotana Hotel, and Hawar Resort are just a few of the well-known hotels that have recently opened in the nation.
Mr. Yazji went on to highlight the significance of Bahrain’s organized auction and tendering procedures, characterizing them as the cornerstones of the expansion of the real estate industry.
“The real estate sector is poised to play a pivotal role in Bahrain’s economic growth,” stated Mr Yazji. “The kingdom’s strategic focus on luxury real estate, investor-friendly policies, and continuous infrastructure enhancements have strengthened the resilience of the real estate market and supported its steady growth this year.”
The demand for upscale and luxurious developments is expected to soar in 2025, drawing in wealthy people, business owners, and investors, according to research done by ASK Real Estate.
“We anticipate sustained growth in real estate demand throughout 2025, fuelled by the confidence of residents and foreign investors in the sector. Many are choosing Bahrain as a destination to reside, conduct business, or invest in property,” Mr Yazji added.
In closing, the real estate specialist emphasized Bahrain’s affordable residential unit costs in comparison to other nations with comparable economies. This benefit is anticipated to significantly stimulate the market and encourage long-term growth in the real estate industry, especially when combined with alluring incentives from marketing companies and real estate developers and easily accessible bank financing choices.
