The value of Bahrain’s real estate transactions rose by 46 percent in 2021 to $2.8 billion, according to figures released by the country’s Survey and Land Registration Board.
The value of property deals rose from $1.9 billion in 2020.
The number of real estate transactions hit 26,136 in 2021, an increase of 35 percent compared to 19,405 transactions in 2020.
The growth coincides with several major developments, including Bahrain’s recently announced National Economic Recovery Plan.
The plan aims to drive economic growth based on five main pillars, including the launch of strategic projects valued at over $30 billion in various sectors, including infrastructure, industrial, housing, tourism, and healthcare.
The housing segment of the plan includes the Sharaka programme, which allows private developers to bid for contracts for government land, in line with the government’s commitment to strengthening its partnership with the private sector and providing quality houses for citizens.
The programme is set to expand over the coming years to include more than 16,000 housing units.
Bahrain has struggled to keep its finances in check in recent years. The pandemic exacerbated its economic deterioration even after a $10bn package pledged by rich neighbours in 2018. In an effort to boost revenue, it plans to double its value-added tax to 10 percent, the highest rate after Saudi Arabia.
The International Monetary Fund sees Bahrain’s budget shortfall equalling 8 percent of economic output this year, less than half of last year’s 18 percent deficit.
If the government achieves its goal of a balanced budget by 2024, it would be the country’s first full-year surplus since 2008, according to IMF data.
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