The Urban Planning and Development Authority (UPDA) in Bahrain has reported a significant increase in the area of land classified for residential use in November 2024. The data reveals a 208,000 square meter expansion, bringing the total residential land area to 79 million square meters, up from 78.8 million square meters in October. This increase represents 11.86% of the total land area in the Kingdom.
The Bahraini government has been accelerating land planning across the country, leading to an increase in residential land area. However, concerns have been raised about potential price increases or a reluctance to release land into the market due to a new regulation requiring developers to cover infrastructure costs when selling new land plots. Despite these concerns, the real estate market is anticipating the positive impact of this new regulation on the overall development of the sector.
In terms of distribution, the Northern Governorate held the largest share of residential land in November, accounting for 24.8 million square meters (36%) of the total. The Southern Governorate followed with 22.3 million square meters, while the Capital Governorate recorded 20.4 million square meters. Muharraq Governorate had 11.3 million square meters of residential land, with Ministry of Housing projects remaining stable at 20.4 million square meters.
Apart from residential land, other land classifications include investment land totaling 19.9 million square meters (2.99% of total land), commercial land measuring 3.4 million square meters (0.52%), special-purpose land covering 32.4 million square meters (32.42%), protected areas comprising 25.3 million square meters (25.34%), recreational areas and parks covering 17.1 million square meters (2.57%), and industrial areas totaling 4.2 million square meters (4.22%).
The UPDA is currently overseeing a detailed planning project encompassing 96 plots, with 82 plots already planned and 70 approved. The remaining plots are undergoing approval procedures, which are expected to further boost the real estate market with diverse investment opportunities for both citizens and residents. The authority’s mandate includes implementing national urban planning and sustainable development policies, preparing master and detailed plans for various regions, and employing a system for optimal land use classification.
In conclusion, the increase in residential land area in Bahrain is a positive development for the real estate market, driven by the government’s efforts to accelerate land planning. As the UPDA continues to oversee various planning projects and implement regulations to ensure sustainable development, the sector is expected to see further growth and investment opportunities for both citizens and residents. With a focus on optimal land use classification and diverse investment opportunities, the real estate market in Bahrain is poised for continued expansion and development in the coming years.
