«pentagonal plan» to reform the real estate market in Bahrain

After a set of reforms to attract investments, it is likely that there will be a recovery in the real estate market in Bahrain in 2023. 

 "ASK Real Estate's" 2022 Annual Report, stated that projects that were halted at the height of COVID-19 have resumed. 

according to the consultancy, the value of real estate transactions at the end of 2022 was $2.8 billion (1.1 billion Bahraini dinars). 

The figure was 3.9% higher than $2.7 billion (1 billion Bahraini dinars) in transactions in 2021.

There were 21,603 transactions in 2022, compared to 21,444 in 2021. Last year’s figure marked a return to pre-pandemic transaction levels, which reached 21,398 in 2019 and 23,213 in 2018.

A deeper commitment to economic diversification away from oil revenues is supporting growth in the Bahrain real estate market.

five-pillar economic transformation program

The government introduced a five-pillar economic transformation program in November 2021. It includes labor market reforms; spending in priority sectors like logistics and tourism; regulatory overhauls; and efforts to improve fiscal balance, including the doubling of VAT to 10 percent.

catalyzing $30 billion in strategic project

Also included is a plan aimed at catalyzing $30 billion in strategic project development and the creation of new industrial investment avenues.

The package of reforms, aligned with broader diversification goals, reiterates Manama’s commitment to creating favorable investment conditions. 

 This, coupled with sustained high oil prices and the government’s forward-thinking initiatives, such as the $30 billion set aside for real estate projects that encompass all sectors is starting to pay off as evidenced by rising prices and deal activity”.

legal reforms

The golden residency scheme launched in 2022 was a major overhaul of Bahrain's immigration laws.

The visa is available to real estate owners, residents, retirees and talented individuals. The permit aims to attract greater investment into both the real estate market and the broader economy.

There are reforms also in place to solve the current problems in the real estate market in Bahrain. In February, Housing and Urban Planning Minister Amna Al-Rumaihi said plans were under development to resolve long-running disputes over land and property.