As Bahrain gears up to transform its aviation landscape with the launch of an extensive “airport city,” the nation is poised to put significant real estate on the market. This ambitious project, centered around the existing Bahrain International Airport, is set to usher in new commercial and residential opportunities, as announced by Mohamed Yousif AlBinfalah, CEO of the Bahrain Airport Company.
The development spans a comprehensive “airport city” concept, expected to bring diverse real estate ventures to the region. A feasibility study has been concluded, and the project awaits government approval, anticipated by year-end. Tenders are slated for release to private developers in the first quarter of next year, marking a significant step forward in Bahrain’s urban development agenda.
While the project promises economic growth and modern infrastructure, experts caution about potential imbalances in the residential real estate market. With a population of 1.6 million, approximately half of whom are non-nationals, the dynamics of supply and demand could affect property prices, especially given the limited areas where non-national investors can purchase freeholds.
In recent developments, Bahrain’s Ministry of Housing and Urban Planning rolled out a proposal for 3,000 residential units and associated infrastructure in Madinat Khalifa, covering over 1.6 million square meters. This move aims to address housing needs but also raises questions about the absorption capacity of the market.
Success over hosting the F1 Formula and the inflow of tourism ignites opportunities for the commercial and rental market.
Adding to the technological and infrastructural transformation, Beyon, a leading Bahraini tech conglomerate, has partnered with Aecom, a global infrastructure consultancy. Together, they are laying the groundwork for a 380,000 square meter Digital City project in Hamala, northwest of the main island. This initiative, managed by the Bahrain Real Estate Investment Company (Edamah), aligns with broader goals to diversify the economy and foster technological innovation, specially that Bahrain has been the Gulf’s financial hub, and can expand within FinTech to further sustain its status.
Industry specialists point out that the success of these projects will hinge on strategic planning and market analysis. Dr. Fatima AlKhalifa, a renowned urban planning expert, notes, “While Bahrain’s real estate initiatives are laudable, they require careful balancing to ensure sustainable growth without saturating the market.”
