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As of September 2025, the average price per square meter in Bahrain varies significantly by location and property type, with city centre apartments averaging 958 BHD/m² while suburban properties start around 668 BHD/m².
The Bahrain property market shows distinct patterns: villas have experienced stronger growth than apartments, waterfront developments command premium prices, and emerging areas like Hidd offer excellent value for money with significant growth potential.
If you want to go deeper, you can check our pack of documents related to the real estate market in Bahrain, based on reliable facts and data, not opinions or rumors.
Bahrain's property market offers diverse investment opportunities with city centre apartments averaging 958 BHD/m² and suburban properties starting at 668 BHD/m². Villas have outperformed apartments with 7.8% growth in 2024-2025.
Waterfront developments in Amwaj Islands and premium areas like Seef District command the highest prices, while emerging areas like Hidd provide excellent entry points for budget-conscious buyers and investors.
| Property Type | Average Price (BHD/m²) | Location Examples |
|---|---|---|
| City Centre Apartments | 958 | Central Manama |
| Suburban Apartments | 668 | General residential areas |
| Luxury Apartments | 800-1,250 | Amwaj Islands, Seef |
| Affordable Villas | 500-800 | Suburban areas |
| Premium Villas | 1,200-2,000 | Waterfront locations |
| Waterfront Properties | 1,000-1,400 | Amwaj Islands, Bahrain Bay |
| Budget Areas | Below 700 | Hidd, outer suburbs |
What's the current average price per square meter in Bahrain?
As of September 2025, the average price per square meter in Bahrain's residential market stands at 958 BHD/m² for city centre apartments and 668 BHD/m² for suburban properties.
The villa market shows an overall average of 640 BHD/m², representing a slight increase from the previous year. Premium waterfront developments in areas like Amwaj Islands command between 1,000-1,400 BHD/m², while budget-friendly options in emerging areas like Hidd start below 700 BHD/m².
Luxury apartments in high-end developments typically range from 800-1,250 BHD/m², with the highest prices concentrated in Seef District and Bahrain Bay. These premium locations offer modern amenities, strategic positioning, and strong appreciation potential for investors.
The current pricing reflects a market where villas have experienced stronger performance than apartments, with villa prices rising 7.8% in 2024-2025 while apartment prices remain relatively flat due to oversupply in certain segments.
How do prices differ between apartments, villas, and commercial properties?
Apartments show the widest price variation, ranging from 668 BHD/m² in suburban areas to 1,250 BHD/m² in luxury developments, reflecting location and amenity differences.
Villas demonstrate a broader price spectrum from 500-800 BHD/m² for affordable options up to 1,200-2,000 BHD/m² for premium waterfront properties. The villa market has shown stronger growth momentum, with prices increasing 7.8% in the past year compared to flat apartment performance.
Commercial properties operate on different metrics, with commercial villas typically renting for 950-3,000 BHD per month depending on size and location. A 300 sqm commercial villa in a standard location might rent for 950 BHD/month, while a 400 sqm premium location property commands up to 3,000 BHD/month.
The performance gap between property types reflects market dynamics: villas benefit from post-pandemic preferences for larger spaces, while apartments face oversupply challenges in certain price segments. Commercial properties remain steady with rental yields depending heavily on location and business district proximity.
Which areas are the most expensive, which ones are up-and-coming, and which are budget-friendly?
| Category | Areas | Price Range (BHD/m²) |
|---|---|---|
| Most Expensive | Amwaj Islands, Bahrain Bay, Seef District | 900-1,400 |
| Premium Urban | Juffair (modern apartments) | 800-1,100 |
| Up-and-Coming | Hidd (industrial growth area) | 500-700 |
| Budget-Friendly | Outer suburbs, non-waterfront districts | Below 700 |
| Emerging Investment | Diyar Al Muharraq (future phases) | 600-900 |
How much do properties typically cost in total, including fees, taxes, and other costs?
Total property purchase costs in Bahrain include several mandatory and optional fees that add 5-10% to the base property price.
The registration fee represents 2% of property value (reduced to 1.7% for quick payment), paid to the Survey & Land Registration Bureau. Legal fees, while optional, are highly recommended and typically cost 1-3% of property value for due diligence and transaction support.
Agent fees range from 2-5% of property value if using real estate services. The municipal tax applies at 10% of annual rental value or property value for foreign buyers, creating an ongoing annual obligation even for unrented properties.
Additional costs include 10% VAT on certain transactions and service charges of 1-3 BHD per square meter annually for managed buildings. However, Bahrain offers significant advantages with no income tax or capital gains tax on property sales, making it attractive for investors focused on appreciation and rental income.
It's something we develop in our Bahrain property pack.
What are some real examples of purchase prices for different property sizes and types?
A 60 sqm city centre apartment at the average rate of 958 BHD/m² would cost 57,480 BHD base price, plus closing costs bringing the total to approximately 60,000-63,000 BHD.
An 80 sqm luxury apartment in Amwaj Islands at 1,200 BHD/m² totals 96,000 BHD base price, with total costs reaching 100,000-105,000 BHD including fees and taxes. This represents a premium location with waterfront access and freehold ownership for foreigners.
A 120 sqm affordable villa in suburban areas at 700 BHD/m² costs 84,000 BHD base price, with total acquisition costs around 88,000-92,000 BHD. Recent market examples show one-bedroom apartments in emerging Hidd area selling for approximately 60,000 BHD total.
A 200 sqm waterfront villa at 1,400 BHD/m² represents a 280,000 BHD investment before fees, reaching 295,000-308,000 BHD total cost. These premium properties offer the strongest appreciation potential and rental yields in the luxury segment.
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How do average prices change depending on the surface area of the property?
Smaller units in premium locations like Juffair and Amwaj Islands typically command higher per-square-meter rates due to location desirability and limited supply of compact luxury units.
Studio and one-bedroom apartments in prime areas often exceed average pricing due to high demand from expatriates and young professionals. These properties benefit from lifestyle location premiums that outweigh size limitations.
Larger properties, particularly in suburban or less central locations, sometimes offer slight per-square-meter discounts as buyers seek value for total living space. Villas above 200 sqm in non-waterfront locations may see reduced rates per square meter compared to smaller premium units.
The size-price relationship varies significantly by location: waterfront properties maintain premium pricing regardless of size, while suburban areas show more traditional scaling where larger properties offer better per-unit value. This dynamic creates opportunities for both compact luxury seekers and space-conscious families.
What are the smartest choices today if you want to live in Bahrain, rent out short-term, rent out long-term, or buy to resell later?
For personal residence, suburban villas offer the best value proposition with spacious living at reasonable per-square-meter costs, while Seef District and Amwaj Islands provide luxury lifestyle options with premium amenities and waterfront access.
Short-term rental investors should focus on Juffair and Amwaj Islands, where high expatriate demand and tourist activity generate strong rental yields. These areas benefit from proximity to business districts, international hotels, and entertainment facilities that attract short-stay tenants.
Long-term rental strategies work best with city centre apartments near central business districts, offering stable returns from expatriate workers and local professionals. Properties with reliable access to major employment centers maintain consistent occupancy rates.
Capital appreciation opportunities concentrate in waterfront developments, premium Seef District properties, and emerging areas like Hidd where infrastructure development and industrial growth drive future value increases. Villas in these strategic locations offer the strongest resale potential based on current market trends.
It's something we develop in our Bahrain property pack.
How does mortgage availability and cost affect the real price per square meter?
As of September 2025, mortgage rates average 5.19% in Bahrain, representing historically moderate levels that significantly impact property affordability and effective per-square-meter costs for buyers.
Higher interest rates increase monthly payment burdens, making buyers more price-sensitive and affecting their maximum purchase capacity per square meter. A 100,000 BHD property with 80% financing at 5.19% creates different affordability scenarios than lower rate environments.
Mortgage availability remains strong for qualified buyers, but lending criteria affect market dynamics by determining which price segments see the most activity. End-users and buy-to-let investors face different affordability calculations based on income requirements and rental yield projections.
The current rate environment favors cash buyers and creates opportunities for investors with strong financing positions to negotiate better per-square-meter pricing, particularly in segments where leveraged buyers face affordability constraints.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Bahrain versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How have property prices changed compared to five years ago and compared to one year ago?
Over the past year (2024-2025), villas have shown strong performance with 7.8% price increases, while apartments remained relatively flat or experienced slight declines due to oversupply in certain market segments.
The five-year comparison (2020-2025) reveals more substantial changes: villas have appreciated over 20% overall, while apartments show modest growth of only 2-4% total. This performance gap reflects post-pandemic preferences for larger living spaces and better villa market fundamentals.
Market fluctuations during this period were influenced by foreign investment flows, new supply delivery, and major infrastructure investments that varied by location and property type. Waterfront and premium developments consistently outperformed general market averages.
The divergent performance between villas and apartments reflects global real estate trends where larger properties gained favor, but also local supply-demand dynamics where apartment oversupply pressured pricing while villa inventory remained more balanced.
What are the forecasts for prices in the next one year, five years, and ten years?
For 2026, market analysts predict 3-7% overall price increases, with villas continuing to lead growth while most apartment segments remain flat due to ongoing supply-demand imbalances.
The five-year outlook through 2030 shows continued growth tied to foreign direct investment, infrastructure development, and tourism expansion. Luxury and prime waterfront properties are expected to significantly outperform the general market during this period.
Ten-year projections through 2035 remain optimistic but uncertain, likely following broader regional urbanization trends. High-end areas and integrated development projects should maintain resilience, while emerging districts may see the strongest percentage gains from current low base prices.
These forecasts depend on continued political stability, infrastructure investment, and Bahrain's ability to maintain its position as a regional financial and business hub. The Golden Residency Scheme and other foreign investment incentives support long-term demand fundamentals.
How do Bahrain's prices per square meter compare to other big, similar cities?
| City/Country | Price per sqm (USD) | Relative Position |
|---|---|---|
| Bahrain (City Centre) | $2,500-2,600 | Moderate regional pricing |
| Dubai, UAE | $3,000-4,000 | 15-50% more expensive |
| Abu Dhabi, UAE | $3,000-4,000 | 15-50% more expensive |
| Doha, Qatar | $2,400-2,700 | Similar to Bahrain |
| Riyadh, Saudi Arabia | $1,800-2,200 | 20-30% less expensive |
| Muscat, Oman | $1,500-2,000 | 25-40% less expensive |
Based on all this, what are the best opportunities right now for buyers and investors?
Affordable villa investments in emerging suburbs like Hidd and Saar offer excellent capital growth potential combined with reasonable entry prices for both family living and long-term appreciation strategies.
Luxury waterfront properties in Amwaj Islands and Bahrain Bay represent premium opportunities with strong international investor interest, Golden Residency Scheme benefits, and consistent appreciation that outpaces general market performance.
Rental yield opportunities concentrate in Juffair and Seef District, where short-term expatriate housing demand creates stable income streams with potential for both rental growth and capital appreciation in strategic central locations.
Infrastructure-dependent investments in areas like upcoming phases of Diyar Al Muharraq position investors for long-term gains as development progresses. These opportunities require patience but offer significant upside potential from current pricing levels.
It's something we develop in our Bahrain property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Bahrain's property market as of September 2025 offers compelling opportunities across different price segments and investment strategies.
The combination of moderate regional pricing, clear ownership laws, favorable tax treatment, and emerging infrastructure development creates a attractive environment for both residents and investors seeking exposure to the Gulf real estate market.
Sources
- Bahrain Price Forecasts - Sands of Wealth
- Bahrain Market Analysis - Aparthotel
- Bahrain Real Estate Market Review - Knight Frank
- Commercial Properties - Property Finder Bahrain
- Bahrain Investment Guide - InvestAsian
- Best Areas in Bahrain - Sands of Wealth
- Bahrain Property Ownership - Sands of Wealth
- Buying Property in Bahrain - PI Startup
- Bahrain Mortgage Rates - The Global Economy
- Bahrain Property Prices - Global Property Guide