Is buying a property in Amwaj Islands a good investment?

Last updated on December 14, 2023

Yes, the analysis of Manama's property market is included in our pack

If you've marveled at the waterfront views and island living on Amwaj Islands, you might have looked into real estate options, securing a piece of paradise in Bahrain's resort-like community.

Is it a good idea though? What's the current state of the real estate market in that area? Are property values appreciating or depreciating? Are investors seeing returns on their real estate investments? How's the demand for rentals?

We'll answer all these questions for you! When building and updating our property pack for Bahrain, our team has been researching and surveying this area. In fact, there is significant customer interest in investing there. Therefore, we believe it would be beneficial to include some information about it in our property pack.

Why do property buyers like investing in Amwaj Islands?

Amwaj Islands in Manama has emerged as a highly attractive location for property buyers, owing to its unique blend of features that set it apart from other real estate markets, not just in Bahrain but also in the wider region.

To understand its appeal, it's essential to delve into what makes Amwaj Islands so special.

Firstly, the location itself is a major draw. Situated in the northeast of Bahrain, these islands offer a tranquil, waterfront lifestyle that is hard to find elsewhere in Manama. The combination of serene sea views and modern infrastructure provides an ideal setting for those seeking a blend of luxury and natural beauty.

This contrasts sharply with the more urbanized and bustling parts of Manama, where the pace of life is faster and the environment is more commercial.

The development of Amwaj Islands began in the early 2000s, and it quickly gained popularity due to its innovative design and premium amenities. It was one of the first areas in Bahrain to offer freehold properties to international buyers, which significantly boosted its appeal.

This policy marked a departure from many other real estate markets in the region, where property ownership is often restricted to citizens.

The islands continue to attract a diverse range of residents, from expatriates and professionals to families and retirees. This cosmopolitan mix is drawn to the high-quality residential options, ranging from luxurious apartments to sprawling villas, each offering a sense of exclusivity and privacy.

The community facilities, including international schools, healthcare centers, and shopping malls, further enhance its attractiveness, providing a self-contained living experience.

However, like any real estate market, Amwaj Islands isn't without its drawbacks. The cost of living and property prices are on the higher end, which might not be feasible for every potential buyer.

Additionally, the location, while scenic, is somewhat removed from the central business districts of Manama, which could be a concern for those who commute daily.

In terms of future prospects, the continued development and investment in the area suggest that the hype around Amwaj Islands is not just a passing trend. The consistent demand for properties here is backed by the ongoing enhancements in infrastructure and community facilities. This steady growth pattern indicates a sustainable appeal, rather than a temporary spike in interest.

So, while Amwaj Islands offer a distinctive and luxurious living experience, it's important for potential buyers to consider their personal needs and preferences.

The combination of stunning natural beauty, modern amenities, and a vibrant community makes it a sought-after location, but it's the match with individual lifestyles and budgets that ultimately determines its suitability.

Make a profitable investment in Manama

Better information leads to better decisions. Save time and money. Download our guide.

Why is Amwaj Islands a nice place to live?

Amwaj Island stands out as a desirable place to live for several reasons, each contributing to its overall appeal.

The lifestyle and culture in Amwaj Islands are distinctly cosmopolitan. This area has been designed with a modern, global sensibility in mind, making it especially attractive to expatriates.

The community is diverse, with residents from various parts of the world, fostering a multicultural environment. This diversity is reflected in the range of restaurants and social venues, offering a taste of different cuisines and cultures.

Speaking of the expatriate community, it's vibrant and thriving in Amwaj Islands. The area caters well to the needs and preferences of expats, with various clubs, community groups, and social events. This makes it easier for newcomers to integrate and find a sense of belonging in this part of Manama.

Living in Amwaj Islands does come with a higher cost of living compared to other areas in Bahrain. The prices of real estate, daily necessities, and leisure activities tend to be on the higher side, reflecting the premium nature of the area.

However, many find the quality of life and amenities offered to be well worth the expense.

Safety is a key feature of the Amwaj Islands. The area is known for its secure environment, making it a safe place to live for families and individuals alike. The presence of security services and a well-planned urban layout contribute to this sense of safety.

In terms of amenities and facilities, Amwaj Islands is well-equipped. For education, there are reputable schools like the American School of Bahrain, offering international standards of education.

Healthcare needs are met by facilities such as the American Mission Hospital. For shopping and leisure, there are several centers like the Lagoon Park, a commercial hub with a range of shops, cafes, and restaurants.

The quality of infrastructure in Amwaj Islands is top-notch. The roads are well-maintained, utilities are reliable, and internet connectivity is generally excellent, catering to the needs of a modern lifestyle. This high standard of infrastructure adds significantly to the comfort of living in this area.

Accessibility is another strong point for Amwaj Islands. It is well connected to other parts of Manama and major transport hubs like the Bahrain International Airport, making travel and commuting relatively convenient. The causeways linking the islands to the mainland ensure smooth transit.

Public transportation options, however, are somewhat limited. While there are some bus services, many residents prefer using personal vehicles or taxis for greater convenience.

The development of more comprehensive public transport options could further enhance the connectivity and accessibility of Amwaj Islands.

Overall, living in Amwaj Islands offers a blend of luxury, convenience, and multicultural vibrancy. Its modern amenities, safe environment, and well-planned infrastructure make it a sought-after location for those who prioritize these aspects in their living experience.

How much does it cost to buy real estate in Amwaj Islands?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Bahrain.

Buying property in Amwaj Islands offers a range of options, each appealing to different preferences and budgets.

The types of residential properties available in Amwaj Islands vary widely, including apartments, houses, and luxury villas. Each type caters to a different segment of the market, from individuals and couples to large families or those seeking a high-end living experience.

Apartments, particularly those offering sea views and modern amenities, are in high demand in Amwaj Islands. Their popularity is due to a combination of factors such as affordability, convenience, and the lifestyle they offer.

They are particularly attractive to expatriates and professionals who seek a comfortable, hassle-free living environment with easy access to the city's amenities.

In terms of new developments versus resale properties, Amwaj Islands has a mix of both. There are ongoing projects that add new residential units to the market, catering to the growing demand. Simultaneously, there's a healthy market for resale properties, as the area's appeal continues to grow.

Discussing the price range, properties in Amwaj Islands can vary significantly based on size, location, and luxury level. Prices per square meter can range widely.

For example, apartments might start from a more accessible price point, while luxury villas can command much higher prices due to their size, exclusivity, and additional features like private pools or direct beach access.

Over recent years, property values in Amwaj Islands have shown a trend of appreciation. This is largely due to the area's growing popularity, ongoing development, and its status as a desirable residential location in Bahrain. The consistent demand for properties here is a strong indicator of the area's continued growth in value.

Looking ahead, there are expectations of new developments and city planning changes in Amwaj Islands that could impact property values. Specific upcoming projects or changes in urban planning, such as the addition of new commercial centers, green spaces, or improved infrastructure, could further enhance the area's appeal, potentially leading to an increase in property values.

Predictions for the real estate market in Amwaj Islands in the coming years remain optimistic. Factors such as the continued development of amenities, the area's growing reputation as a high-quality residential locale, and its attractiveness to both local and expatriate buyers indicate a potential increase in value.

Additionally, the stable political and economic climate in Bahrain contributes to a positive outlook for the real estate market in the area.

Where is the best area to buy a property in Amwaj Islands?

Choosing the best area to buy a property in Amwaj Islands, depends largely on individual preferences, lifestyle needs, and budget.

Amwaj Islands is a diverse and multifaceted development, with different parts offering varied atmospheres, property types, and price points.

One of the most prominent areas in Amwaj Islands is the Lagoon area. It is known for its lively atmosphere, with a range of cafes, restaurants, and retail outlets. Properties in this area tend to attract those who enjoy being in the heart of activity and value convenience.

The Lagoon area mainly features apartments, which range from moderately priced to high-end, depending on the size and view.

For those seeking a more tranquil and exclusive environment, the areas with luxury villas, such as Tala Island or Floating City, are ideal. Tala Island is known for its spacious villas and excellent community facilities, including swimming pools, beaches, and fitness centers.

The Floating City, as its name suggests, offers a unique living experience with homes built on water channels, giving residents direct water access and a feeling of being in a Venetian-like environment. Properties in these areas are typically at the higher end of the price spectrum, reflecting their exclusivity and unique features.

Up-and-coming areas within Amwaj Islands are worth considering for buyers who are looking for potential growth in value. New developments are continuously being added, offering modern amenities and innovative living spaces. These areas might not have the established reputation of the Lagoon or Tala Island yet, but they offer the potential for appreciation as the community grows and develops.

When looking for a property, it's also important to consider personal lifestyle preferences. If a bustling, social atmosphere is desirable, the Lagoon area is a great choice.

For a more secluded, luxury living experience, areas like Tala Island and Floating City are more suitable. Each area has its unique charm and benefits, making Amwaj Islands a versatile location for property buyers with different tastes and needs.

On the contrary, some areas in Amwaj Islands might not be advisable for certain buyers. Areas that are still under development might lack immediate access to fully established amenities or might be subject to ongoing construction, which can be a drawback for those looking for a ready-to-move-in environment.

These areas, while potentially offering lower prices, might not yet provide the same level of convenience or atmosphere as the more developed parts of Amwaj Islands.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Bahrain.

Area	Atmosphere	Property Types	Price Range
Lagoon Area	Lively, social, convenient	Apartments	Moderate to High
Tala Island	Tranquil, exclusive	Luxury Villas	High
Floating City	Unique, serene, exclusive	Waterfront Homes	High
New Developments	Emerging, potential for growth	Varied	Varies

Don't lose money on your property in Manama

100% of people who have lost money in Bahrain have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.

Is there a strong rental demand in Amwaj Islands?

Amwaj Islands has indeed seen a strong rental demand, shaped by its unique location, lifestyle offerings, and the type of properties available.

This demand varies between short-term and long-term rentals, each catering to different tenant profiles.

For short-term rentals, the demand often comes from tourists, business travelers, and short-stay expatriates. These tenants typically look for furnished apartments or villas that offer a comfortable and luxurious stay, often with amenities like swimming pools, fitness centers, and proximity to restaurants and shops.

The Lagoon area, known for its vibrant atmosphere and convenience, is particularly popular for short-term stays due to its array of dining and shopping options.

Long-term rentals, on the other hand, tend to attract expatriates who are in Bahrain for work, often accompanied by their families. These tenants usually seek stability and community, preferring properties that offer a sense of home. They often look for unfurnished or semi-furnished apartments and villas, with a preference for spacious and family-friendly layouts.

Areas like Tala Island and the Floating City are popular for long-term rentals, offering serene environments and community amenities like schools, healthcare facilities, and playgrounds.

The profile of potential tenants in Amwaj Islands is diverse but can be broadly categorized into professionals, families, and lifestyle seekers. Professionals, often working in multinational corporations or embassies, seek modern apartments with good connectivity and convenience.

Families look for larger spaces with safety and educational facilities nearby. Lifestyle seekers, drawn to the unique living experience of Amwaj Islands, often look for luxurious properties with exceptional views and amenities.

Properties that include amenities like high-speed internet, modern appliances, security services, and access to leisure facilities tend to have lower vacancy rates. These features align well with the lifestyle expectations of the typical tenant in Amwaj Islands, making properties more attractive for both short-term and long-term rentals.

In terms of returns on investment, properties in Amwaj Islands can be quite lucrative. While the exact figures vary, the potential annual rental yield can be attractive, especially for well-located properties with desirable amenities.

Properties in prime locations like the Lagoon area or Tala Island, offering a blend of luxury and convenience, often yield higher returns due to their continuous demand.

Recently, there's been an increasing demand for properties that offer unique living experiences, such as waterfront homes in the Floating City or luxurious apartments with panoramic sea views.

These types of properties are becoming more popular and could potentially offer better yields in the future, as they cater to a growing segment of tenants seeking a blend of luxury and exclusivity.

Make sure you understand the real estate market in Manama

Don't rush into buying the wrong property in Bahrain. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.

Is it easy to buy a property as foreigner in Amwaj Islands?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in Bahrain.

Buying property in Amwaj Islands, Manama, as a foreigner is relatively straightforward, thanks to Bahrain's welcoming approach to foreign investment in real estate.

However, there are certain aspects that foreign buyers need to be aware of to navigate the process smoothly.

Firstly, Bahrain is one of the few countries in the Gulf region that allows foreigners to own freehold property, and Amwaj Islands is a prime area where this is possible. There aren't stringent restrictions on foreign buyers, but it's crucial to be aware of the legal and regulatory framework governing property purchases.

This includes understanding property registration processes, fees, and any limitations on the types of properties that can be purchased.

The purchasing process in Amwaj Islands typically involves selecting a property, negotiating the price, and then moving forward with legal formalities. This includes drafting a sales agreement, registering the property, and ensuring that all financial transactions comply with local laws. The process is generally efficient, but it's important to ensure all legal and financial aspects are thoroughly checked.

One primary risk associated with property investment in Amwaj Islands for foreigners is navigating the legal and regulatory environment without adequate local knowledge.

There might be nuances in property laws or changes in regulations that are specific to Bahrain. Classic pitfalls can include overlooking property registration details, misjudging market values, or underestimating additional costs such as maintenance fees or taxes.

Working with a local real estate agent or lawyer is highly advisable. A knowledgeable local agent can provide valuable insights into the market, help identify the best investment opportunities, and guide through the negotiation process.

A lawyer, on the other hand, ensures that all legal aspects of the purchase are in order, which is crucial for a smooth transaction and to avoid any legal complications in the future.

Common exit strategies for property investors in Amwaj Islands include selling the property for capital gain or renting it out for a steady income stream. The property market in Amwaj Islands has been quite resilient, and properties in prime locations have historically appreciated over time.

Renting out properties, especially given the area's popularity among expatriates, can provide a consistent return on investment.