Bahrain's real estate transactions continue to grow amid moderate performance across key sectors including residential, office, retail and hospitality, according to global real estate consultancy firm CBRE.
The kingdom's hospitality sector has witnessed steady growth during the three-month period ended June 30, 2023 with the average occupancy rate in the capital Manama sits 11.2% higher year-on-year in the year to date to June 2023, increasing from 46.1% in 2022 to 51.3% in 2023, stated the expert citing the STR data.
Over the same period, Manama’s ADR increased only marginally by 1.8%, while RevPAR increased by 13.1%.
In June, Bahrain signed a MoU with Saudi Arabia to promote the two countries as one regional and global tourist destination.
The agreement establishes a framework to collaborate in efforts to market tourism programmes and activities in both countries.
Moreover, Bahrain was included in the International Congress and Convention Association (ICCA) global rankings for the first time in five years, featuring in 89th place, due to events held at Exhibition World Bahrain. Exhibition World has hosted 23 events up to the end of Q2 2023 and welcomed over 250,000 visitors.
Heather Longden, Director - Advisory & Transactions, at CBRE in Bahrain said: "CBRE has recorded an uptick in registered leases within our managed office properties and a minor reduction in vacancy rates to 26.3%."
"All key performance indicators in the hospitality sector have shown signs of improvement year-on-year and according to the BTEA, Bahrain International Airport welcomed 4,098,582 passengers during the first six months of 2023, up 43.2% from the same period in 2022, " stated Longden.
"While retail occupancy rates have improved marginally to reach 70%, average rental rates have dropped in the first half of 2023 as supply of shopping centre space continues to grow," he added.-TradeArabia News Service
