What is the average price per sqm in Manama?

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

Who is the author of this content?

SANDS OF WEALTH

A team specialized in real estate investing in MENA countries (Morocco, UAE, Oman, etc.)

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Manama. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At Sands of Wealth, we explore the Bahraini real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Manama, Muharraq, and Riffa. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What are the current average prices per square meter in Manama?

As of September 2025, Manama's property market shows distinct pricing tiers across different property categories.

Prime apartments in central Manama command approximately BHD 958 per square meter, equivalent to $2,540 per square meter. These properties are typically located in sought-after areas with premium amenities and excellent connectivity.

Luxury villas represent the higher end of the market, with prices frequently exceeding BHD 1,300 to BHD 1,600 per square meter ($3,450 to $4,240 per square meter). The most expensive villa properties are concentrated in prestigious waterfront developments and exclusive gated communities.

Commercial properties in prime business districts command premium rates, often starting from BHD 1,200 per square meter ($3,180 per square meter) and rising significantly for premium locations in the Diplomatic Area and central business zones.

Budget-conscious buyers can find apartments in emerging neighborhoods for BHD 600 to BHD 700 per square meter ($1,590 to $1,855 per square meter).

How do prices vary between apartments, villas, and commercial properties?

Property prices in Manama's residential market show significant variation based on property type and target market.

Apartments generally offer the most accessible entry point into Manama's property market. Studio and one-bedroom apartments in areas like Hoora, Gudaibiya, and Juffair provide affordable options for first-time buyers and investors seeking rental income properties.

Villas consistently command the highest prices per square meter, particularly in premium locations such as Amwaj Islands, Seef, Diyar Al Muharraq, and upscale areas of Saar. These properties cater to affluent families and investors seeking long-term capital appreciation.

Commercial properties in the Diplomatic Area, Seef, and Bahrain Bay attract the highest prices due to strong demand from businesses requiring prestigious addresses. Multi-use urban developments and properties with mixed commercial-residential potential typically achieve premium valuations.

The price gap between property types reflects both the scarcity of prime development land and the diverse buyer demographics in Manama's market.

Which neighborhoods are the most expensive, affordable, and up-and-coming in Manama?

Manama's neighborhood pricing reflects a clear hierarchy based on location, amenities, and development quality.

Category	Neighborhoods	Price Premium/Discount
Most Expensive	Seef, Amwaj Islands, Juffair, Bahrain Bay, Diplomatic Area	Premium pricing (top 20%)
Most Affordable	Hoora, Isa Town, Al Hidd, Gudaibiya	30-50% below prime areas
Up-and-Coming	Saar, Riffa, Diyar Al Muharraq	15-25% below peak but rising
Established Premium	Adliya, Sanabis	Stable high values
Investment Hotspots	Muharraq, Tubli	Moderate pricing, strong yields
Waterfront Luxury	Durrat Al Bahrain, Reef Island	Ultra-premium (top 5%)
Family-Oriented	Hamala, Janabiyah	Mid-range with growth potential

How do property prices compare between smaller and larger units?

Property pricing in Manama demonstrates an inverse relationship between unit size and per-square-meter costs.

Smaller units, particularly studios and one-bedroom apartments, typically command higher per-square-meter rates due to their affordability and strong rental demand from young professionals and expatriate workers. These units often achieve BHD 1,000 to BHD 1,200 per square meter ($2,650 to $3,180 per square meter).

However, smaller units offer significantly lower total purchase prices, with studios in affordable areas starting from $30,000 to $50,000, making them accessible to first-time buyers and investors with limited capital.

Larger units benefit from economies of scale, with luxury three-bedroom apartments and expansive family villas often achieving lower per-square-meter prices relative to compact premium apartments in prime locations. A 200-square-meter villa may cost less per square meter than a 50-square-meter luxury apartment in the same neighborhood.

This pricing structure reflects market demand patterns, where space-constrained premium locations command premiums for any available square footage.

What is the typical total purchase price including all fees and costs?

Property transactions in Manama involve several additional costs beyond the listed purchase price.

Cost Component	Typical Rate	Description
Registration Fee	1.5-3% of purchase price	Government registration costs
Real Estate Agent Fee	1-5% (varies)	Paid to selling/buying agents
Legal Fees	~1.5% of purchase price	Legal documentation and review
Transfer/Stamp Duty	3% of purchase price	Government transfer taxes
Total Transaction Costs	6-7% of purchase price	Combined additional expenses
Property Valuation	BHD 200-500	Required for mortgage approval
Insurance (Annual)	0.1-0.3% of property value	Property protection coverage

Bahrain does not impose annual property taxes, which reduces ongoing ownership costs compared to many international markets. However, rental income and capital gains are subject to taxation if properties are used for investment purposes.

What are the current mortgage rates and financing options in Manama?

Manama's mortgage market offers competitive financing options for qualified buyers as of September 2025.

Fixed-rate mortgages typically range from 5.2% to 6.6% for standard 20 to 30-year terms, reflecting current GCC regional mortgage rates. These rates apply to borrowers with strong credit profiles and stable income documentation.

Adjustable-rate mortgages start at approximately 6.0% but may fluctuate based on central bank policy changes. Most buyers prefer fixed-rate products for payment predictability over the loan term.

Down payment requirements typically range from 20% to 30% of the purchase price, with higher down payments often securing better interest rates. International buyers may face higher down payment requirements, sometimes reaching 40% for non-residents.

Off-plan properties frequently offer attractive payment plans, requiring 20% to 40% upfront with the balance due upon completion and handover. These arrangements can reduce immediate financing needs for new developments.

It's something we develop in our Bahrain property pack.

Can you provide examples of current property prices in the market?

Current property listings in Manama demonstrate the wide range of investment opportunities available across different price points.

Studio and one-bedroom apartments in neighborhoods like Hoora and Gudaibiya are priced between $30,000 and $50,000, offering entry-level investment opportunities with strong rental yields for budget-conscious buyers.

Two to three-bedroom apartments in popular expatriate areas such as Juffair, Seef, and Amwaj Islands typically range from $100,000 to $250,000. These properties attract steady rental demand from international professionals and families.

Premium three to four-bedroom apartments and starter villas in developing areas like Saar, Riffa, and Diyar Al Muharraq are priced between $300,000 and $500,000. These properties offer excellent family living with strong appreciation potential.

Luxury waterfront villas in exclusive developments such as Amwaj Islands and Bahrain Bay start from $550,000 and can exceed $1 million for the most prestigious properties with private beach access and marina facilities.

Commercial properties and mixed-use developments in prime business locations typically start from $400,000 for smaller units, with large commercial spaces commanding significantly higher prices based on location and specifications.

How have property prices changed compared to one and five years ago?

Manama's property market has experienced varied performance across different segments over recent years.

Over the past year, prime residential segments have shown robust growth of 4% to 11%, driven by increased demand from expatriate professionals and regional investors. Waterfront properties and luxury villas have led this appreciation trend.

Mid-market and budget residential properties have remained relatively flat over the past year, with some areas experiencing minor corrections due to oversupply in certain apartment segments, particularly in the Diplomatic Area.

Commercial property values have shown mixed performance, with prime office spaces maintaining value while some secondary commercial areas have experienced slight declines due to changing business space requirements.

Looking at the five-year trend, prime locations have demonstrated cumulative increases with particular strength in waterfront and villa projects where land scarcity drives long-term value appreciation. Some market segments have experienced volatility, particularly areas with significant new supply or changing demographics.

The overall market has benefited from Bahrain's economic diversification efforts and infrastructure investments, supporting property values in well-positioned developments.

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.

What are the price forecasts for the next one, five, and ten years?

Market analysts project continued growth in Manama's property market with varying trajectories across different segments.

For the next year, quality properties are expected to see modest appreciation of 3% to 7%, with luxury and waterfront properties likely to outperform. Some oversupplied mid-market segments may experience stabilization or small declines as the market balances supply and demand.

The five-year outlook shows more robust growth potential, with luxury and premium segments forecast to achieve compound annual growth rates of 7% to 8%. Apartments are positioned for the fastest growth due to sustained demand from expatriate residents and regional investors.

Villa markets are expected to maintain steady appreciation, particularly in locations benefiting from infrastructure improvements and master-planned community developments.

Ten-year projections suggest Manama will follow broader regional patterns, with the highest gains expected in well-located, amenity-rich projects and areas benefiting from major infrastructure investments such as transportation links and smart city developments.

Economic diversification initiatives and population growth are expected to sustain long-term demand for quality residential and commercial properties.

How does Manama compare with similar regional and global cities?

Manama's property pricing positions it competitively within the regional and global context as of September 2025.

Prime Manama apartments at approximately $2,540 per square meter are more expensive than comparable properties in Riyadh, Saudi Arabia, which average around $1,700 per square meter. However, Manama remains substantially more affordable than Dubai's prime locations, which exceed $4,600 per square meter.

Compared to Abu Dhabi and other major GCC cities, Manama offers attractive value while maintaining access to regional business opportunities and lifestyle amenities.

On a global scale, Manama's prime property prices represent approximately one-third the cost of major European capitals or Asian financial centers like Hong Kong and Singapore, making it attractive for international investors seeking regional exposure.

Manama's rental yields typically exceed those available in most other GCC cities, providing stronger income returns for investment properties. This yield advantage makes Manama particularly attractive for investors prioritizing cash flow over pure capital appreciation.

The combination of moderate pricing and strong rental returns positions Manama as a compelling option for both regional and international property investors.

What are the best property options for different living and investment strategies?

Manama's diverse property market offers suitable options for various buyer objectives and lifestyle requirements.

For buyers seeking a primary residence, Saar, Riffa, and Diyar Al Muharraq offer excellent family-oriented communities with quality schools and amenities. Singles and expatriate professionals often prefer Juffair for its proximity to entertainment, dining, and business districts.

Short-term rental investors should focus on Juffair and Seef areas, which benefit from proximity to business centers, nightlife, and entertainment venues. These locations attract strong demand from business travelers and short-term expatriate assignments.

Long-term rental strategies work best in established areas like Amwaj Islands, Muharraq, Adliya, and the Diplomatic Area, where stable tenant populations include families, university staff, and long-term expatriate residents.

For capital appreciation and resale potential, waterfront villas and prime apartments in Amwaj Islands, Seef, and Diyar Al Muharraq offer the best prospects for future price gains due to land scarcity and continued development pressure.

It's something we develop in our Bahrain property pack.

What are the smartest market choices for different budgets and strategies?

Strategic property selection in Manama depends heavily on available budget and investment objectives.

1. **Under $100,000 Budget**: Studio and one-bedroom apartments in Gudaibiya, Hoora, and Al Hidd provide the best combination of affordability, rental yields, and market entry opportunities.2. **$100,000-$200,000 Range**: Newer two-bedroom apartments in Juffair and Sanabis offer solid rental demand from expatriate professionals with fair price appreciation potential.3. **$200,000-$350,000 Investment**: Premium apartments or starter villas in up-and-coming neighborhoods like Diyar Al Muharraq and Saar benefit from infrastructure investment and development momentum.4. **$350,000-$500,000 Portfolio**: Family villas in established communities provide excellent lifestyle benefits with steady appreciation and strong rental demand from expatriate families.5. **$500,000+ Luxury Segment**: Large family villas and waterfront properties in Seef, Amwaj Islands, and Bahrain Bay offer luxury living, long-term value preservation, and strong regional investor demand.

Each budget tier offers distinct advantages, with lower budgets favoring income generation while higher budgets enable luxury lifestyle and stronger capital appreciation potential.

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.

Sources

1. Sands of Wealth - Bahrain Price Forecasts
2. Iris WLL - Villa Market in Bahrain
3. Mordor Intelligence - Bahrain Luxury Real Estate Market
4. Sands of Wealth - Bahrain Real Estate Trends
5. Sands of Wealth - Manama Property Guide
6. Global Property Guide - Bahrain Buying Guide
7. Immigrant Invest - Property Tax Information
8. Central Bank of Bahrain - Treasury Bills
9. The Mortgage Reports - Current Mortgage Rates
10. Iris WLL - Future Real Estate Trends Bahrain