The real estate market witnessed a significant decline in the total value of transactions during the first quarter of 2026, compared to the same period in 2025, amidst a clear disparity in performance across the governorates. Data indicates that the number of sales transactions decreased slightly by 2.62%, while the total value of transactions recorded a larger decline of 25.62%, alongside a 7.72% decrease in new building permits, reflecting a state of relative caution in the market.
In the Capital Governorate, the number of transactions fell to 605, compared to 627 in the previous year, and the value of transactions also declined sharply from BD 145.912 million to BD 68.990 million, representing a significant decrease of over 50%. Building permits also saw a decline to 81, compared to 92, reflecting a clear slowdown in real estate activity within this governorate.
Muharraq Governorate partially bucked the general trend, recording a 6.70% increase in the number of transactions to 637, although the value of these transactions declined to BD 69.474 million compared to BD 83.144 million in the previous year. The number of building permits also decreased from 101 to 93, indicating a relative slowdown in the pace of real estate development.
In the Northern Governorate, more positive indicators emerged, with the value of transactions rising by 5.88% to BD 102.398 million, despite a decrease in the number of transactions to 624 compared to 691. Building permits also saw a significant jump of 29.21%, reaching 230, reflecting increased activity in the construction sector and positive expectations for future growth.
On the other hand, the Southern Governorate witnessed a decline in both the number and value of transactions. The number of transactions fell to 330 compared to 340, and the value of deals decreased to BD 42.993 million from BD 55.852 million in the previous year. Conversely, building permits saw a slight increase, reaching 140 compared to 134, indicating continued momentum in construction projects.
Overall, these indicators reflect a slowdown in the real estate market, particularly regarding transaction values, while construction activity continues in some areas. This could bolster the prospects for a gradual recovery in the coming periods.