Bahrain's real estate sector is poised to maintain stability despite global market volatility, including shifts in tariffs and fluctuating oil revenues, according to a new report by ASK Real Estate.

Offering an overview of the global, Gulf, and Bahraini economies, with a particular focus on real estate performance and related sectors, the Q1 2025 report suggests that while these macroeconomic uncertainties might temper short-term investor sentiment, Bahrain’s fundamental market strengths remain robust.

Stable rents, a prevalence of high-value transactions, and ongoing investment in infrastructure and tourism are expected to underpin sustained long-term growth. The emergence of premium developments and an evolving regulatory framework are further enhancing Bahrain’s appeal as a regional investment destination.

Karim Yazji, chief executive of ASK Real Estate, expressed confidence in the sector’s resilience. “We are very confident that the real estate sector in Bahrain is capable of offering sustainable and stable investment returns despite the fluctuations of oil prices and the instability that may be experienced in other sectors that are directly linked to global markets,” he stated.

Mr Yazji attributed this stability to Bahrain’s “long-term vision… to create a stable and vibrant economy.”

The first quarter of 2025 presented a mixed picture for Bahrain’s real estate. Total transaction value increased by 3.67 per cent to BD283.71 million, yet transaction volumes fell by 18.78pc compared to Q1 2024. This divergence indicates a continued market preference for high-value, premium properties across the kingdom.

Rental rates and occupancy in the office and retail sectors held steady throughout Q1 2025, reflecting a balanced supply and demand dynamic. This sustained stability in rental rates, the report notes, signals market maturity, attracting investors seeking consistent returns amid broader economic shifts.

Mr Yazji highlighted the importance of the kingdom’s regulatory environment. “The advanced regulatory framework of the real estate sector as well as transparency measures in Bahrain are among the most important components that support the growth and stability of the Bahraini economy in general,” he added.

ASK Real Estate has recently secured a tier ‘A’ valuation licence from Real Estate Regulatory Authority (RERA). This permits the company to provide valuation and advisory services for all types of real estate properties, including mega projects.

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