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Will real estate prices in Bahrain go up in 2025?

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Thinking about buying a 3-bedroom apartment in Juffair? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?

And what about long-term investment—should you look into other areas like Seef or Amwaj Islands where property values might appreciate more over time?

In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Bahrain Property Pack.

Will property prices increase in Bahrain in 2025?

Yes, property prices in Bahrain are expected to rise in 2025, driven by a combination of economic growth and increased foreign investment.

Backed by our fresh, in-depth market analysis, we’re confident that Bahrain remains an attractive destination for both local and international investors.

While there are challenges such as inflation and potential geopolitical tensions, the main drivers behind Bahrain’s property market growth are strong and persistent.

The demand for residential and commercial properties continues to grow, supported by government initiatives and infrastructure development, making any significant price declines unlikely.

Signals pointing to a property price increase in Bahrain

Here are some factors suggesting prices could increase:

Bahrain's Vision 2030 economic plan is expected to continue attracting foreign investment, particularly in the real estate sector, leading to increased demand and higher property prices.

The development of new infrastructure projects, such as the expansion of the Bahrain International Airport and new road networks, is likely to enhance connectivity and accessibility, boosting property values in surrounding areas.

Government initiatives aimed at diversifying the economy and promoting tourism are expected to increase demand for both residential and commercial properties, driving up prices.

The introduction of new real estate regulations to protect investors and streamline property transactions is likely to boost investor confidence, leading to increased market activity and higher prices.

A growing expatriate population, attracted by Bahrain's business-friendly environment and quality of life, is expected to increase demand for housing, particularly in urban areas.

The continued development of luxury residential and commercial projects is likely to attract high-net-worth individuals, pushing up prices in the premium segment of the market.

Signals pointing to a property price decrease in Bahrain

Here are some factors suggesting prices could fall:

Potential geopolitical tensions in the region could impact investor confidence and lead to a slowdown in property market activity.

Rising inflation and living costs may reduce disposable income for potential buyers, particularly affecting demand in the mid-range property market.

An oversupply of new residential developments could lead to increased competition among sellers, potentially putting downward pressure on prices in certain areas.

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If property prices go up in Bahrain, how much would they increase by?

If real estate prices in Bahrain were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.

Typically, real estate in dynamic markets like Bahrain appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as location, economic conditions, and property type.

It means that, if you spot a charming 2-bedroom apartment in Juffair for 120,000 BHD today, don't be surprised if it's priced between 123,600 and 128,400 BHD this time next year.

To give you a better understanding, here is a table that shows 7 types of Bahraini real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.

Type of Property Average Price in 2024 (BHD) Price in 2025 (3% increase) Price in 2025 (5% increase) Price in 2025 (7% increase)
Apartment in Juffair (60 sqm / 646 sqft) BHD 120,000 BHD 123,600 BHD 126,000 BHD 128,400
Modern Apartment in Seef (75 sqm / 807 sqft) BHD 150,000 BHD 154,500 BHD 157,500 BHD 160,500
Luxury Villa in Amwaj Islands (200 sqm / 2,153 sqft) BHD 500,000 BHD 515,000 BHD 525,000 BHD 535,000
Studio in Manama (30 sqm / 323 sqft) BHD 60,000 BHD 61,800 BHD 63,000 BHD 64,200
Loft in Riffa (80 sqm / 861 sqft) BHD 180,000 BHD 185,400 BHD 189,000 BHD 192,600
Townhouse in Saar (150 sqm / 1,615 sqft) BHD 350,000 BHD 360,500 BHD 367,500 BHD 374,500
Investment Property in Diplomatic Area (50 sqm / 538 sqft) BHD 100,000 BHD 103,000 BHD 105,000 BHD 107,000

Everything you need to know is included in our Property Pack for Bahrain

If real estate prices go up in Bahrain, which areas are likely to see the biggest increases?

Today, people who want to move to Bahrain are looking for a blend of traditional charm and modern amenities, which Amwaj Islands offers. Hence, we could see a price increase there in 2025.

Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Juffair has really taken off.

We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Bahraini market.

Neighborhood Level of Increase Why
Amwaj Islands High Recent development of luxury waterfront properties and its increasing appeal to international buyers, driving demand.
Seef District High Expected rise due to limited housing stock, upcoming commercial projects, and growing demand for prime properties in central Bahrain.
Juffair Medium-High Ongoing gentrification and new entertainment venues, along with several planned redevelopment projects in the area, are likely to push prices higher.
Financial Harbour Medium The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments.
Riffa Views Medium-High Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward.
Adliya Medium Investment in local infrastructure, such as the extension of road networks and renovation of historic areas, is boosting long-term value.
Diyar Al Muharraq Medium-High With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors.
Saar High Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable.
Budaiya Medium-High Its proximity to Manama, along with new residential developments, makes it increasingly attractive to professionals seeking more space.
Muharraq Medium Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable.
Durrat Al Bahrain High As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values.
Manama High Upcoming restoration of historic sites and high-profile cultural projects are driving a renewed focus on this central, historic location.

If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Bahrain?

In 2025, Bahrain real estate trends focus on tech-smart, energy-efficient apartments, larger family homes in suburban areas, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.

  • Tech-Equipped and Energy-Efficient Apartments:

    Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.

  • Family-Sized Homes in Suburban Areas:

    With a growing demand for larger living spaces, especially among families, suburban areas near Manama and other key locations in Bahrain are seeing increased interest. Proximity to green spaces, schools, and community amenities is a major factor driving value.

  • Properties with Outdoor Spaces:

    Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In urban areas of Bahrain, these features offer a much-needed escape and are likely to drive up property values.

  • Eco-Friendly Buildings with Low Carbon Footprints:

    Bahrain's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the country's green goals, leading to price appreciation in this category.

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