Due to institutional improvements that encourage investments, a rebound in Bahraini real estate could occur in 2023. Several development projects got postponed in April 2020 to meet extra emergency spending during the COVID-19 pandemic. Nonetheless, many suspended projects have already resumed. This is according to ASK Real Estate's 2022 annual report. Real estate transaction values reached $2.8 billion by the end of 2022, a 3.9% rise over the previous year. In 2022, there were 21,603 transactions, which is comparable to pre-pandemic levels of 21,398 in 2019 and 23,213 in 2018. So Bahrain’s real state transaction levels are healthy.
BAHRAIN’S FAVOURABLE ECONOMIC CONDITIONS
The Bahrain government's goal is to diversify the country's economy away from oil. Enhancing the country's real estate market is helping strengthen the attractiveness of Bahrain’s real estate market in this way. The government introduced a five-pillar economic transformation programme in November 2021. This includes labour market changes and funding in key areas like logistics and tourism. But it also includes regulatory overhauls and initiatives to maintain fiscal balance, like a 10% VAT rise. A $30 billion strategic project development plan is also in the works, as are new industrial investment prospects. These measures are consistent with the government's larger diversification aims. They also state the government's commitment to ensuring favourable investment conditions. Knight Frank partner and Middle East Research director Faisal Durrani gave an important insight towards the end of 2022. He conveyed that "the tentacles of Economic Vision 2030 are spreading throughout the economy, and business confidence is rising."
ATTRACTIVENESS OF BAHRAIN’S GOLDEN RESIDENCY VISA
Bahrain adopted the Golden Residency Visa scheme in 2022. This is offered to property owners, residents, pensioners, and gifted people. This visa acts as a way of increasing investment in both the real estate industry and the economy. Moreover, legal measures are in place that addresses existing concerns in the Bahrain real estate market. Housing and Urban Development Minister Amna Al Romaihi announced intentions in February. These intentions were to address long-standing land and property issues. The Shura Council also approved modifications to the 1994 Land Division Law. These amendments included procedures for resolving legal property disputes. In 2022, HM King Hamad issued amendments that let judges deal with properties in inheritance portfolios rather than only land parcels. These amendments guarantee a fairer approach to settling legal property issues in Bahrain.
OVERALL TAKE ON BAHRAIN’S REAL ESTATE MARKET
Bahraini business confidence is rising as a result of legislative improvements. But it has gained a boost from larger government promises to achieve fiscal balance. Higher oil prices have also led to a more positive outlook for the long term. The Bahrain real estate industry has the foundations in place to see continued expansion in 2023. Developers expect that these elements will boost transaction volumes and values this year.
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