Bahrain’s economy continued its economic diversification in the third quarter of 2016 with construction and real estate leading the growth, according to CBRE’s recent Bahrain MarketView.

The projected GDP growth for 2016 stands at 2.8%, despite a contraction in the oil sector of 1.7% year-on-year, with the government heavily funding infrastructure projects.

While the office market remains stable, there is increased activity in the residential freehold apartment sector and a diversification in developments with mixed use becoming prevalent, mainly as a combination of retail and entertainment.

According to CBRE, the increased activity in many key master plan projects demonstrates increased confidence into the Bahrain real estate market. On top of that, the value of traded property in the second quarter of 2016 increased by 11%, compared to the same period previous year.