Bahrain is a small island state in the Persian Gulf. It is one of the first states in the region to become rich from oil and gas production. It was also the first to diversify its economy and is now the financial center of the Islamic world. Where there is finance, there is also a surplus, and the best way to invest assets is real estate.
Features of buying property in Bahrain
Foreigners can buy real estate in Bahrain, but only in certain freehold zones. They are located in the prestigious areas of Juffair, Seef, Amwaj Islands, Reef Island, Durrat Al Bahrain and Busaiteen. To complete the transaction, you need to obtain permission from the Ministry of Interior.
Only in these areas can investors fully own real estate. This has its advantages, since they also have the highest rental yields (from 8.3% to 11%). In general, there is no property tax in the country, but a municipal tax of 10% is levied on the rental value for foreigners.
But the most compelling argument is the possibility of obtaining permanent residence by purchasing Bahrain real estate for sale for over 50,000 Bahraini dinars ($132,615).
Real Estate Prices in Bahrain
Real estate in Bahrain for foreigners is more expensive than for locals, but this is not due to the inflated cost. The fact is that the zones with full ownership are limited, and competition in them is high: outside these zones, real estate is 20-40% cheaper, but it can only be taken on a long-term lease. At the same time, any operations with it, whether it is redevelopment, repairs or installation of equipment, must be agreed with the landlord.
Average Prices of property for sale in Bahrain:
| District |
Property Type |
Average Price in Dinars |
Average Price in USD
|
| Amwaj Islands |
2-bedroom apartment |
115,000
|
305,015 |
| 4-bedroom villa |
350,000 |
928,306 |
| Seef |
2-bedroom apartment |
130,000 |
344,799 |
| Studio |
63,000 |
167,095 |
| Jufayr |
3-bedroom apartment |
90,000 |
238,707 |
| 2-bedroom apartment |
77,500 |
205,553 |
| Saar |
4-bedroom villa |
430,000 |
1,140,491 |
| 3-bedroom apartment |
90,000 |
238,707 |
| Riffa |
5-bedroom villa |
350,000 |
928,306 |
| 3-bedroom townhouse |
190,000 |
503,937 |
| Manama |
5-bedroom penthouse |
280,000 |
742,645 |
| Studio |
56,000 |
148,529 |
Where to buy residential property in Bahrain
Not everywhere in Bahrain you can buy a house in full, and therefore the most popular places to buy properties are regions with freehold zones. The most popular of them are the Amwaj Islands. This is an artificial archipelago of six islands (Tala, Najman, Asdaf, Murijan, Jud and Lulu) in the north-eastern part of Bahrain, located near the international airport and the King Fahd Causeway.
The islands are designed as a self-sufficient resort complex with private beaches. The islands are home to international schools (British School of Bahrain, Choueifat International School), medical centers (American Mission Hospital) and supermarkets (Alosra).
Rental yields are 7-9% for apartments, 6-8% for villas, with high demand for short-term rentals via Airbnb due to tourists from Saudi Arabia, the UAE and Europe. Amwaj Islands is the only area in Bahrain where foreigners can own villas with direct access to the water.
Also popular: Bahrain Bay (the capital area), the artificial islands of Diyar Al Muharraq, the city of Riffa and the Durrat Al Bahrain archipelago.
