Bahrain Luxury Residential Real Estate Market Size (2024 - 2029)

The Bahrain Luxury Residential Real Estate Market is anticipated to experience growth in its market size over the forecast period, driven by increasing demand for luxury residences from both GCC countries and foreign investors. Despite a recent softening in the residential market due to an oversupply of housing, the demand for rental properties remains robust. Bahrain's appeal as a safe and affordable destination with a diverse population continues to attract foreign retirees and investors, contributing to the market's expansion. However, the market dynamics are influenced by restrictions on foreign property purchases and the ongoing development of new residential units, which may impact rental prices.

Market Size of Bahrain Luxury Residential Real Estate Industry

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Bahrain Luxury Residential Real Estate Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 279.82 Million
Market Size (2029) USD 376.39 Million
CAGR (2024 - 2029) 6.11 %
Market Concentration Low

Major Players

Bahrain Luxury Residential Real Estate Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Bahrain Luxury Residential Real Estate Market Analysis

The Bahrain Luxury Residential Real Estate Market size in terms of transaction value is expected to grow from USD 279.82 million in 2024 to USD 376.39 million by 2029, at a CAGR of 6.11% during the forecast period (2024-2029).

The market is driven by the demand for luxury residents from the GCC as well as other foreign countries. Furthermore, there is also demand for rental real estate, which is driving the market.

The Kingdom of Bahrain is an archipelago between Saudi Arabia and Qatar. It is made up of the main island of Bahrain and dozens of smaller islands. It has become more popular with foreign retirees and investors because it is safe and quiet, has low living costs, and has a diverse population. Bahrain, for example, allows women to work and drive, which is considered more liberal than neighboring Gulf Cooperation Council countries such as Saudi Arabia and Qatar. While Arabic is the official language, English is widely understood. Despite increasing population growth and an influx of foreign residents, Bahrain's residential market has softened in recent years due to an oversupply of housing.

During January–March 2022, Bahrain's residential capital values remained stable. Across the country, demand for rental properties such as villas and townhouses remained strong in Q1 2022. According to a real estate services provider, capital values in Bahrain's residential real estate segment have remained largely stable every quarter. When compared year on year, the capital value index for apartments and villas in the country has dropped by an average of 1.2% and 2.6%, respectively, according to Savill's Q1 2022 Bahrain Market in Minutes report.

Foreigners in Bahrain are limited to buying in freehold areas, which include Durrat Al Bahrain, Seef, Reef Island, Juffair, Amwaj Islands, Dilmunia Island, Diyar Al Muharraq, and Riffa Views, according to brokers. New construction continues in Bahrain, with approximately 9,000 new units expected by 2026 in Diyar Al Muharraq, a complex of seven artificial islands near Manama, likely further depressing rents. At the moment, average residential prices in Bahrain are roughly half those of comparable properties in Dubai, United Arab Emirates. People from countries in the Gulf Cooperation Council, primarily Bahrain and Saudi Arabia, account for 75–80% of all sales transactions in Bahrain. Several of the remaining buyers are British, Indian, and Pakistani.

Bahrain Luxury Residential Real Estate Industry Segmentation

Luxury residential real estate refers to properties that are exclusively designed for human occupation and that provide charm and resort life with high-end amenities. A complete background analysis of the Bahrain luxury residential real estate market, including the assessment of the economy and contribution of sectors in the economy, a market overview, market size estimation for key segments, emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact, is covered in the report.

The Bahrain luxury residential real estate market is segmented by type (apartments and condominiums, villas, and landed houses) and by key cities (Manama, Muharraq, Juffair, and the rest of Bahrain). 

The report offers market size and forecast values (in USD) for all the above segments.

By Type
Condominiums and Apartments
Villas and Landed Houses
By Key Cities
Manama
Muharraq
Juffair
Rest of Bahrain
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Bahrain Luxury Residential Real Estate Market Size Summary

The Bahrain luxury residential real estate market is experiencing a notable transformation, driven by increasing demand from both GCC countries and international investors. The Kingdom's appeal as a safe and economically attractive destination, coupled with its liberal social policies compared to neighboring Gulf countries, has made it a preferred choice for foreign retirees and investors. Despite recent challenges such as an oversupply of housing, the market remains resilient, with strong demand for rental properties like villas and townhouses. The government's economic initiatives and the National Economic Recovery Plan are pivotal in promoting real estate investment, aiming to diversify the economy away from hydrocarbons. This has led to a surge in luxury developments, with significant projects underway, further enhancing Bahrain's status as a burgeoning international real estate hub.

The market is characterized by a mix of local, regional, and a few global players, with major companies like Diyar Al Muharraq and Naseej leading the charge. The luxury residential sector is witnessing increased activity, including mergers and acquisitions, which are expected to boost development and attract more entrants. The government's efforts to implement international practices and regulatory frameworks are fostering a conducive environment for investment. As a result, Bahrain is seeing a rise in high-end projects, such as the Golden Gate Towers and Paramount Tower, which are set to deliver thousands of luxury units. The market's growth trajectory is supported by a steady influx of foreign buyers, primarily from the Gulf region, Europe, and Asia, underscoring Bahrain's growing prominence as a key player in the luxury residential real estate market.

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Bahrain Luxury Residential Real Estate Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Current Market Scenario and Consumer Sentiments

    2. 1.2 Luxury Residential Real estate Buying Trends Socio-economic and Demographic Insights

    3. 1.3 Government Initiatives and Regulatory Aspects for the Luxury Residential Real estate Sector

    4. 1.4 Insights into Interest Rate Regime for General Economy and Real estate Lending

    5. 1.5 Insights into Rental Yields in the Luxury Residential Real Estate Market

    6. 1.6 Insights into Affordable Housing Support provided by Government and Public-Private Partnerships

    7. 1.7 Insights into Real Estate Tech and Startups Active in the Real Estate Segment (Broking, Social Media, Facility Management, and Property Management)

    8. 1.8 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Condominiums and Apartments

      2. 2.1.2 Villas and Landed Houses

    2. 2.2 By Key Cities

      1. 2.2.1 Manama

      2. 2.2.2 Muharraq

      3. 2.2.3 Juffair

      4. 2.2.4 Rest of Bahrain

Bahrain Luxury Residential Real Estate Market Size FAQs

The Bahrain Luxury Residential Real Estate Market size is expected to reach USD 279.82 million in 2024 and grow at a CAGR of 6.11% to reach USD 376.39 million by 2029.

In 2024, the Bahrain Luxury Residential Real Estate Market size is expected to reach USD 279.82 million.

Bahrain Luxury Residential Real Estate Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)