Manama : The country’s growth in the real estate sector grew 4.5 per cent in the first quarter of 2017, contributing over $1.7 billion to the economy, the Bahrain Economic Development Board (EDB) said in its quarterly report yesterday.
Real estate transactions in Bahrain grew by 15.2 per cent in the first quarter of 2017, reaching a total value of $770 million, an 8.1 per cent jump compared to the same quarter in 2016, the report said.
The real estate sector is witnessing rapid expansion due to growth in demand for residential and retail development.
The retail and hospitality sector also witnessed rapid growth, while the hotels and restaurants sector emerged as the fastest growing sector during the first quarter of this year, recording a 12.3 per cent year-on-year real rate of expansion.
According to statistics published by the Ministry of Housing, the number of residential applications pending allocation of units currently stands at 55,000 and is estimated to grow by 5,000 each year, and are driving the high demand for residential units in the Kingdom. Additionally, the influx of visitors to Bahrain in recent years has also contributed towards a growing demand for tourism and retail facilities. In 2016, the total number of arrivals to Bahrain increased by 6 per cent from 2015 to 12.2 million visitors. The Kingdom welcomed 5.6 million tourists to Bahrain in the first half of the year, according to Bahrain Tourism and Exhibitions Authority (BTEA), representing a 14 per cent increase from the first half of 2016.
Housing developments, both social and private, have increased in recent years and the Kingdom is currently witnessing more than 17 housing projects, which include some private projects. The Kingdom is also home to the Avenues Mall, a 83,700 sqm building to be opened later in the year, as well as other retail developments including Bahrain Marina and mixed-use development areas such as Bahrain Bay and Water Garden City.