Abstract : Background: Several countries are now becoming smart cities by taking decisive steps, which include allocating resources, implementing smart city initiatives and policies to support the transformation of the real estate sector. However, despite the diverse measures by the Bahrain government to promote smart cities and enable economic growth, there is still data paucity regarding stakeholders' perspectives in the real estate industry on how the goal could be achieved. Research Objectives: This study was conducted to achieve the following objectives; (1) identify the potential positive and negative economic impacts of the implementation of smart city initiatives by real estate, (2) analyse the potential opportunities and challenges associated with the use of Smart City technologies in Bahrain, and to (3) assess the potential economic development opportunities that could arise from the use of Smart City technologies in Bahrain. Methods: A semi-structured interview was conducted among 15 stakeholders from Bahrain’s real estate sector. The first section interview focused on the present infrastructure, elements required for smart city establishment, approaches to building smart cities, and underlining drivers for smart city initiatives. Meanwhile, the second section emphasised the expected benefits of smart city development in terms of sustainable development and the associated challenges. Data obtained from the interview were analysed thematically. Results: Participants had diverse perspectives on the current state of infrastructure in Bahrain. The key elements required for smart city development were collaboration with international smart cities, human capital and human resources, and alternative energy sources. Increasing citizens’ quality of life (QOL), exponential population growth, ensuring environmentally friendly activities, addressing climate change and global warming and achieving sustainable development were considered the predominant motives for smart city initiatives in Bahrain. Meanwhile, improved QOL, diversified investment, environmental sustainability, improved security architecture and robust tourism and hospitality industry were mentioned as the expected benefits, whereas the potential challenges were cybersecurity, public acceptance or low awareness, high cost and financing constraints, insufficient human resources, and infrastructural requirements. Conclusion: Policymakers and relevant authorities involved in Bahrain’s smart city initiatives may consider providing innovative solutions to cybersecurity, addressing public acceptance and awareness about smart cities, attracting foreign investment to finance the real estate industry, and building competent and effective human capital. Prioritising these areas may facilitate the transformation of Bahrain’s potential smart cities and drive towards attaining sustainable development.