Bahrain’s property market had a muted performance towards the end of 2023, with the value of transactions, as well as sales and rental rates of some properties, posting marginal declines, according to a new report.

Total deals closed in the market during the fourth quarter of 2023 stood at BHD 1.07 billion ($2.8 billion), marking a 1.2% decrease on the same period last year, CBRE reported on Thursday.

However, total deals during the same period reached 9,362, an increase of 65.4% over a year earlier and 82% from the third quarter of 2023.

The consultancy firm said performance was “generally muted” across sectors, although the apartment segment has seen an uptick in prices.

Overall, villa prices dropped by 0.44%, but apartments posted a 2.5% increase from 2022 to 2023.

In the rental segment, mid- to high-end quoted apartment rates dropped by 1.7% in the year to the fourth quarter of 2023. Leasing rates for mid- to high-end villas also fell marginally by 0.1%.

“While performance is generally muted across sectors, the residential apartment segment has seen an uptick in average sales rates achieved for 2023, which is indicative of the quality of supply that continues to be developed,” said Heather Longden, Director – Advisory & Transactions at CBRE in Bahrain.

Office rental rates remained stable last year, with Grade A rents averaging at BHD 5.98 per square metre per month. Vacancy rates have also stabilised and seen a small improvement, as the workforce expanded.

(Writing by Cleofe Maceda; editing by Seban Scaria) seban.scaria@lseg.com