In a recent report, Bahrain’s Economic Development Board (EDB) has shared extremely promising figures about the performance of the country’s real estate sector at the end of 2020.
In a statement, EDB stated that the country’s real estate sector rebounded in the third and fourth quarter of 2020, clocking impressive growth numbers of 14 percent and 20 percent respectively to close the year with transactions worth $1.9 billion.
The authority remarked that the value of ongoing mixed-use major real estate projects, mainly Eagle Hills Marassi Al Bahrain, Diyar Al Muharraq, Dilmunia and Bahrain Bay, were worth over $12 billion.
EDB stated that Bahrain’s National Real Estate plan for 2021-2024 is expected to further increase the sector’s contribution to the national economy as part of continued economic diversification efforts. The plan reportedly includes five initiatives and 17 projects, including laws and regulations, long-term plans and operational initiatives for developing the real estate sector.
Mr. Ali Al Mudaifa, EDB’s Executive Director – Investment Origination remarked the bounce back as a “testament to the Kingdom’s dedication towards economic growth.”
“Seeing these projects come to life has been a rewarding experience and we are confident that Bahrain’s real estate sector will continue to grow in the coming years,” the EDB Executive Director added.
The Cavendish Maxwell Report
Earlier in December 2020, UAE-based property consultancy Cavendish Maxwell reported that oversupply continues to put pressure on residential and office sectors. The consultancy further pointed out that higher vacancy rates coupled with the completion of residential projects under construction are factors increasingly pressuring landlords to attract tenants.
Sharing its outlook about the commercial office space market, Cavendish Maxwell stated that certain pockets in the segment have displayed signs of recovery with rents either holding steady or declining at a slower pace.
The Cavendish Maxwell report also noted that retail projects, new and completed, were designed to align with the rising popularity of e-commerce versus traditional retail.