Bahrain residential real estate sales value continues to grow in Q1 2023 but at a slower pace than in 2022, Invest-Gate reports.

Mid-end villa developments in the country increased in value by 5.2% YoY. This is due to sales prices reaching AED603 ($1,603.72) per sqm compared to AED573 per sqm in Q1 2022.

Prices are now 18.5% higher than in Q1 2022, estimated at AED800 monthly.

However, rising credit costs have impacted demand for high-end or premium developments, with high-end apartment values dropping by 1.3% quarter-on-quarter, according to a market update by Savills.

Savills says that demand for low-end and mid-end villas remained strong in the rental market as end-users limited their expenses owing to the current global economic landscape.

However, high-end rental values remained stable across 90% of the Grade A stock tracked by Savills. Still, on average, rents dropped by 1.5% on a quarterly comparison and 2.1% on an annual comparison.

The real estate company adds that the sales market reflects the sentiment of the rental market, with mid-end capital values experiencing YoY growth of 4.6%, primarily attributed to reduced available stock in the sub-sector.

Savills explains the Survey and Land Registration Bureau data, which shows that the value of real estate transactions increased by 17% YoY in Q1 2023 to AED243.1 mn.