The Bahraini real estate investment market is witnessing vibrant activity, with Dilmunia Island standing out as a key center for growth and a gateway to successful investments. This article explores the characteristics and potential of Dilmunia Island, comparing it with the Amwaj Island market. Additionally, we provide our projections for the island's future in the post-COVID-19 era.
The Bahraini real estate investment market is witnessing vibrant activity, with Dilmunia Island standing out as a key center for growth and a gateway to successful investments.
This article explores the characteristics and potential of Dilmunia Island, comparing it with the Amwaj Island market. Additionally, we provide our projections for the island's future in the post-COVID-19 era.
Land Expansion and Utilization: Dilmunia has expanded from 49 lands in 2016 to 337 lands by 2022, despite a reduction in total land area from 1.12 million m² to 958,594 m². This strategic development points to efficient land utilization, catering to a growing demand for diverse property types.
Infrastructure Investment: Approximately 15% of Dilmunia's land area is allocated for infrastructure, indicating a strong commitment to sustainable and comprehensive development.
Population Shift Among Expatriates: The COVID-19 pandemic led to a decrease in the number of foreign residents in Bahrain, significantly impacting the kingdom's real estate market. This major demographic shift necessitated a re-evaluation of the supply and demand dynamics in Dilmunia Island.
Trends in Demand for Residential Units: The demand for residential units among expatriates decreased from 49,000 units in 2019 to 46,000 units in 2021. This indicates a growing preference for smaller, affordable, and suitable housing options, in response to the market's evolving needs.
Occupancy Rates and Pricing: The residential occupancy rates on the island decreased from 77.7% in 2019 to 67.3% in 2021. This decline was accompanied by a reduction in both property sale prices and rental rates, indicating a phase of self-development in the market, which is likely to enhance investment opportunities on the island.
Preference for Smaller Residential Units: The majority of people are now favouring smaller residential units, such as one-bedroom and two-bedroom apartments. This shift opens new horizons for developers to cater to emerging market segments.
A comprehensive analytical study reveals distinctive characteristics for each island in terms of development plans, types of properties, and pricing trends. We summarize these in the comparison table below:
The post-COVID era presents new opportunities and challenges for the real estate market on Dilmunia Island. Various factors will shape the future of the island:
Resilience to the Impact of the COVID-19 Pandemic: The COVID-19 outbreak significantly affected Bahrain's real estate sector, particularly the demand from foreigners for housing. The demand dropped by over 3000 units between 2019 and 2021 alone.
Adaptation Strategies: The Dilmunia real estate market shows signs of adapting to these changes, offering more effective housing solutions capable of responding to the island's demographic and economic developments.
Shifting Customer Preferences: Customers are increasingly demanding smaller residential units, a trend Dilmunia Island is addressing by planning subdivisions to meet this demand.
Investor Confidence: With market stabilization post-pandemic, investor confidence is expected to grow, along with their desire to invest in locations that best meet market needs. Dilmunia Island stands out in this context for its significant investment opportunities and advantages.
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