Bahrain Real Estate Market Snapshot H1 2026

In H1 2026, the number of real estate transactions in the Bahrain market totalled 4,951, according to the Survey & Land Registration Bureau (SLRB). Amidst ongoing regional tensions, this amounts to a decrease of around 63.2% as compared to the same period in 2025. Meanwhile transaction values totalled an estimated BD671 million, a drop of just -13.4% as compared to H1 2025.

In the residential sector, there has been minimal change in asking rental rates, with average apartment rents dropping by -1.2% and villas by -4.1% in the continuation of an ongoing trend. Meanwhile, in the sales market RERA data shows a -1.82% dip in average apartment transaction values in H1, with villas registering a -2.0% drop, in a segment dominated by the national population.

In the retail sector, H1 2026 occupancy rates across CBRE’s basket of tracked retail assets averaged around 65%. This comes amidst sustained downward pressures on rental rates, with landlords forced to offer significant incentives such as rent-free periods, revenue shares and capital contributions to encourage tenant activities. Meanwhile, Seef Mall is in the process of a redevelopment aimed at refreshing the property and keeping up with evolving consumer expectations.

The office market, faces renewed headwinds in H1 2026. However, the CBRE property management team continue to administer office leasing activity, with co-working and flex-space operators reporting resilience. Average rental rates across Grade A & B properties remain stable at BD5.1/sqm/month, with the development pipeline not seeing any significant additions.

The hospitality sector has been overtly affected by the regional situation, with Bahrain International Airport closed during March. As a result of limited travel to the island, STR data showed that average hotel occupancy in Bahrain was down 20 percentage points, while average RevPAR dropped 39%. Average Daily Rates (ADRs), however, were maintained, with a drop of just 8% in H1.