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What do the latest numbers reveal about Bahrain’s real estate market? Are property prices on the rise, or are they stabilizing? Which areas offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Bahrain, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) Seef properties saw a 6% price increase in 2024, making it one of the fastest-growing neighborhoods
The Seef area is catching eyes due to its limited housing stock and new commercial projects.
In early 2024, Bahrain's real estate market showed a mixed bag of growth. While villa sales jumped by 7.8% per square meter, apartment sales held steady. This suggests that areas like Seef could see significant property value increases.
The overall real estate scene in Bahrain is buzzing, fueled by both locals and expats. New residential projects, especially luxury apartments, are keeping the market lively. This activity hints that Seef might experience notable price growth.
Seef's appeal is not just about scarcity; it's also about potential. With upcoming commercial developments, the area is becoming a hotspot for investors and residents alike. This makes Seef one of the fastest-growing neighborhoods in terms of property prices.
As the market evolves, Seef stands out with its unique blend of limited supply and high demand. This combination is a recipe for price growth of 6% in 2024, making it a prime choice for property buyers.
Sources: Kane Bridge News ME
2) Villa prices in prime areas like Amwaj Islands rose by at least 4% in 2024 due to growing demand
In 2024, villa prices in prime areas like Amwaj Islands increased by at least 4% due to growing demand.
Local buyers were particularly interested in affordable units, which drove this trend. Reports from the previous year highlighted that villa sales on a square meter basis rose by 8% year-on-year compared to 2023. This surge was a standout in a market with mixed residential performance, showing that even with existing and upcoming supply, demand for affordable villas remained strong.
Bahrain's appeal as a property investment destination is bolstered by its strategic location and economic stability. The country offers a favorable investment climate, making it attractive to investors. Amwaj Islands, with its luxurious waterfront properties, high-end apartments, and villas, became a hotspot for those seeking a blend of luxury living and high rental yields.
Investors are drawn to these regions not just for the luxury but also for the high rental yields they offer. This combination of factors has further boosted demand, making areas like Amwaj Islands particularly popular. The allure of luxury living in such prime locations continues to attract both local and international buyers.
Despite the mixed performance in the broader residential market, the demand for villas in these prime areas remains robust. The increase in villa sales and prices is a testament to the ongoing interest in these properties. The market dynamics in Bahrain, especially in sought-after areas like Amwaj Islands, reflect a strong preference for quality and location.
Sources: Reuters, Savills Research
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.
3) Foreign investors buying residential property in Bahrain increased by 18% in 2024
The number of foreign investors buying residential property in Bahrain grew by 18% in 2024.
Bahrain's property market is buzzing with activity, thanks to a 7% increase in supply as 1,361 new units are expected by the end of 2024. This expansion opens doors for foreign investors eager to dive into the market. Meanwhile, villa sales have seen an 8% year-on-year increase on a square meter basis, driven by local demand for affordable options, signaling a robust market that foreign investors find appealing.
Foreign investment in Bahrain hit a record $6.8 billion, a boon for the real estate sector. The country's welcoming stance on foreign property ownership, especially in luxury and commercial areas, makes it a hot spot for international investors. These liberal policies are a key reason why more foreign investors are eyeing Bahrain for property investments.
Tourism is another factor boosting Bahrain's appeal. With Manama being named the GCC tourism capital for 2024, the hospitality sector is set for a boom. This surge in tourism is likely to increase demand for residential properties, making the market even more attractive for foreign investors looking to benefit from the tourism wave.
Sources: AGBI, Savills Research
4) Residential property maintenance in Bahrain costs about 0.5% to 1% of the property value annually
In Bahrain, the average cost of maintaining a residential property is about 0.5% to 1% of its value each year.
One reason for this is that utility costs in Bahrain are lower than in places like Dubai and Abu Dhabi. For example, electricity in Dubai is about 45% more expensive, and water costs nearly 75% more. This makes utilities in Bahrain more affordable, which helps keep overall maintenance costs down.
While commercial properties in Bahrain have service charges set at 15% of the rent for common area maintenance, this doesn't directly apply to residential properties. However, it gives a sense of how maintenance costs are structured in the region.
The real estate market in Bahrain is experiencing stagnant prices and an increasing supply of units. This situation might indirectly affect maintenance costs as property owners adjust their budgets to stay competitive.
Sources: Islamic Markets, AGBI Real Estate, OECD, KPMG
5) Residential properties in Bahrain are selling faster, with average time on market dropping to 45 days in 2024 from 60 days in 2023
The average time for residential properties to sell in Bahrain has dropped to 45 days in 2024, down from 60 days in 2023.
This shift is mainly because of an increase in the supply of homes. With more options available, buyers can make quicker decisions, leading to faster sales.
Another factor is the stability in property prices. When prices remain steady, buyers feel more confident that they're getting a fair deal, which encourages them to act swiftly.
These changes in the market dynamics mean that buyers are finding it easier to purchase homes without the pressure of rising costs.
As a result, the combination of more available homes and stable prices has significantly reduced the time properties spend on the market.
For those considering buying property in Bahrain, this trend indicates a more efficient buying process with less waiting time.
Sources: Savills Research
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6) Around 30% of landlords in Bahrain provided rent-free periods or discounts during lease negotiations in 2024
In 2024, about 30% of landlords in Bahrain offered rent-free periods or discounts during lease negotiations.
This trend emerged as landlords aimed to attract tenants and reduce high vacancy rates. The real estate market in Bahrain was experiencing an oversupply, with more available apartments than renters actively seeking them.
To tackle this supply-demand mismatch, landlords began offering enticing incentives. These included lower rental rates and rent-free periods, which were strategic moves to keep their properties occupied.
Such incentives were crucial for landlords to maintain a steady rental income despite the challenging market conditions. By offering these benefits, they could ensure their properties remained appealing to potential tenants.
In a market flooded with options, these strategies helped landlords stand out and secure leases more effectively. The competitive landscape pushed them to be more flexible and creative in their offerings.
7) Residential properties in Bahrain are appreciating at an average rate of 4% annually
The average annual appreciation rate for residential properties in Bahrain is currently 4%.
In Bahrain, the property market is shaped by a mix of supply and demand dynamics. While there's been a rise in the supply of freehold apartments, which might lower prices, the demand for villas is strong, leading to a 7.8% annual increase in villa prices. This mixed performance across different market segments results in a moderate overall appreciation rate.
The luxury property segment is also on the rise, fueled by interest from GCC countries and international investors. This has sparked a surge in high-end developments, which can boost appreciation rates in this segment and influence the overall market average.
Economic factors are crucial too. Bahrain's economy is stable, with a real GDP increase of 3.3% in Q1 2024, which supports property values. However, efforts to diversify the economy and tighter financial conditions might balance out the appreciation rate by tempering demand.
Sources: AGBI, Savills Research, Arab News
8) Residential property auctions in Bahrain doubled in 2024 compared to 2023
The number of residential property auctions in Bahrain doubled in 2024 compared to 2023.
This surge is largely due to an oversupply of residential units, which has put pressure on the market. When there are more homes than buyers, prices can stagnate or even fall, leading sellers to opt for auctions to attract potential buyers.
In the first quarter of 2024, real estate transactions in Bahrain increased by 23% compared to the same period in 2023. This rise in activity might have made auctions a more appealing option for property owners looking to sell quickly and efficiently.
The luxury real estate market in Bahrain is also on the rise, fueled by both local and international interest. Areas like Manama, Muharraq, and Juffair are buzzing with new high-end developments. This growth in the luxury sector could be pushing more high-value properties into the auction scene.
With more high-end properties entering the market, the overall number of property auctions has increased. This trend is particularly noticeable in areas with active luxury developments.
Sources: AGBI, Savills Research, SLRB, Mordor Intelligence
We have made this infographic to give you a quick and clear snapshot of the property market in Bahrain. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Expats comprised 25% of luxury residential buyers in Bahrain in 2024
In 2024, expats accounted for 25% of buyers in Bahrain's luxury residential market.
The luxury real estate market in Bahrain was on the rise, with projections to hit USD 279.82 million that year. This surge was largely fueled by interest from the GCC and other international regions, highlighting a strong pull for expats and foreign investors.
Bahrain's appeal grew among foreign retirees and investors, thanks to its safe environment and low living costs. The country's progressive policies, like allowing women to work and drive, made it an attractive destination for those eyeing luxury real estate.
Market dynamics were also shaped by the availability of affordable housing with better amenities. Yet, there was a clear trend towards luxury waterfront properties, spurred by Bahrain’s coastal charm and booming high-end tourism.
Expats were particularly drawn to these luxury waterfront options, as they offered a blend of modern living and scenic views. This demand was a testament to Bahrain's strategic location and its evolving real estate landscape.
Sources: Mordor Intelligence, Savills Research
10) Over 70% of expat property buyers in Bahrain in 2024 focused on freehold zones like Durrat Al Bahrain
In 2024, over 70% of expat property buyers in Bahrain were drawn to freehold zones like Durrat Al Bahrain.
These areas, including Seef and Amwaj Islands, are among the few places where expatriates can purchase property outright. This legal setup offers a sense of security and ownership, making it highly appealing to foreign investors.
The allure doesn't stop at ownership rights. Luxurious and modern amenities in these zones significantly boost their popularity. Durrat Al Bahrain, for example, is famous for its upscale residential villas and apartments.
Set amidst a collection of islands, Durrat Al Bahrain offers a variety of high-end living options. This level of luxury and exclusivity is a major attraction for expatriates seeking a premium lifestyle.
Expatriates are particularly interested in these areas because they provide a unique blend of comfort and investment potential. The combination of legal ownership and luxury living is hard to resist.
For those looking to invest in Bahrain, these freehold zones offer a compelling package of security, luxury, and exclusivity.
Sources: AGBI, Impact Estate, Property Finder
11) The residential property vacancy rate fell to about 12% in 2024, improving from 15% in 2023
The residential property vacancy rate in 2024 dropped to around 12%, improving from 15% in 2023.
This shift is partly due to villa prices rising by 7.8% annually, fueled by strong local demand for affordable homes. More people are eager to buy, which naturally reduces the number of empty properties.
There's also been an increase in the supply of residential units, with many freehold apartments now available to international investors. This has likely attracted more buyers, further decreasing vacancy rates.
Although the sources don't specifically mention a 12% vacancy rate, the overall trends in the residential market show a positive shift in demand and supply dynamics.
These changes suggest a healthier market, where both local and international buyers are finding opportunities. The increased interest in affordable units and the availability of freehold apartments are key factors in this trend.
As the market continues to evolve, the balance between supply and demand will be crucial in maintaining these lower vacancy rates. The current dynamics indicate a promising outlook for potential property buyers.
Sources: AGBI, Kane Bridge News ME, Arab News
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12) Freehold property transactions grew by 10% in 2024 due to investor interest
In 2024, freehold property transactions in Bahrain jumped by 10%, mainly due to investor interest.
The residential real estate market in Bahrain is buzzing with activity. Demand for affordable homes is a major driver, and while apartments face an oversupply, villas are gaining popularity. This shift shows a growing preference for more spacious living.
In the first half of 2024, the market showed mixed results. Villa sales rates rose by 7.8% per square meter compared to 2023, but apartment sales stayed flat. The apartment sector's stagnation is due to a large supply, both current and upcoming.
Despite these challenges, investor confidence remains strong, bolstered by government support. This confidence is crucial for the sector's growth, even as the apartment market struggles.
Government initiatives are also playing a significant role. These efforts are aimed at boosting the real estate market, making it more attractive to both local and foreign investors.
Overall, the real estate sector is evolving, with villas leading the charge. This trend highlights a shift in buyer preferences and market dynamics.
Sources: AGBI, Statista, Zawya
13) Residential mortgages in Bahrain require an average down payment of about 20% of the property value
In Bahrain, the average down payment for residential mortgages is typically around 20% of the property's value.
While this 20% figure is a common benchmark, some lenders like HSBC Bahrain required a minimum down payment of 30% for their home loans back in 2023 and 2024. This was on the higher end, reflecting a more cautious lending approach.
For foreign nationals, the down payment requirements often ranged from 20% to 30% of the property's purchase price. This range provided some flexibility, but the 20% mark was a frequent starting point for many buyers.
These variations in down payment requirements depended largely on the lender and the borrower's specific circumstances. Local buyers might find more consistent terms, while foreign buyers could experience a wider range of requirements.
Understanding these nuances is crucial for anyone considering purchasing property in Bahrain. Knowing the typical down payment expectations can help potential buyers plan their finances more effectively.
For more detailed information, you can refer to the sources provided. These resources offer insights into the specific lending practices in Bahrain.
Sources: HSBC Basic Home Loans, Bahrain Property Financing
14) Apartment prices per square meter in Bahrain range from BHD 800 to BHD 1,200, based on location
In Bahrain, apartment prices per square meter vary widely depending on the location.
In Seef, a sought-after area, one-bedroom apartments range from BHD 800 to BHD 1,250 per square meter. This is because Seef is popular and in high demand, which naturally pushes prices up. Meanwhile, Amwaj Islands also sees high property prices, with one-bedroom apartments selling from about BHD 740 to BHD 1,100 per square meter. The quality of the apartment's finish can affect the price within this range.
Juffair offers a more budget-friendly option, with one-bedroom apartments generally priced between BHD 700 and BHD 800 per square meter. This makes it an attractive choice for those looking for affordability without compromising on location.
Looking at market trends from 2023 and 2024, prices in Bahrain's residential market have remained stagnant. This is happening alongside an increase in the supply of units, which might lead to price drops if demand doesn't catch up.
Interestingly, there's been an 8% year-on-year increase in villa sales on a square meter basis. This surge is driven by local buyers seeking affordable units, showing a shift in purchasing trends.
Sources: Weetas, AGBI, Aparthotel
We made this infographic to show you how property prices in Bahrain compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
15) Around 60% of new residential projects in 2024 were in the Northern Governorate
In 2024, around 60% of new residential projects sprang up in the Northern Governorate.
According to the Real Estate Regulatory Authority (RERA), this area was bustling with activity, leading in sales transactions across Bahrain during the first quarter of 2024. The Northern Governorate didn't just top the charts in the number of sales; it also boasted the highest total sales value, surpassing BD30 million, which translates to about USD 80 million.
This surge in sales indicates that the Northern Governorate was a hot spot for new residential developments. The region's growth and appeal made it a prime location for launching new projects, mirroring the broader real estate trends seen throughout Bahrain.
With its strategic location and thriving market, the Northern Governorate became a magnet for developers. The area's infrastructure and amenities likely contributed to its popularity, making it a preferred choice for both investors and homebuyers.
As the real estate market evolved, the Northern Governorate's prominence in new projects reflected a shift in focus towards areas with high potential for growth. This trend was not just a coincidence but a result of careful planning and market analysis.
Sources: Real Estate Regulatory Authority (RERA) Report for Q1 2024
16) Around 35% of residential buyers in Bahrain in 2024 were driven by lifestyle upgrades
In 2024, 35% of residential buyers in Bahrain were driven by the desire for lifestyle upgrades.
Luxury homes in Bahrain have become a magnet for those seeking sophistication and exclusivity. These properties are not just about a roof over your head; they offer a lifestyle filled with private pools, spas, and fitness centers. Imagine having access to world-class golf courses and marinas right at your doorstep, enhancing the allure of these high-end residences.
Integrated communities are another big draw. They blend residential, commercial, and recreational spaces, offering a holistic living experience. This setup is perfect for those who want everything within reach, from shopping to leisure activities, making it a true lifestyle upgrade.
Developers are also tapping into the wellness trend. By incorporating amenities like spas, fitness centers, and green spaces, they cater to the growing demand for a balanced and healthy lifestyle. It's not just about living; it's about living well.
Both local and international buyers are flocking to these premium spaces, attracted by the promise of a luxurious lifestyle. The demand for such properties is a testament to the rising trend of lifestyle-focused living in Bahrain.
Sources: MarkWide Research, AGBI Real Estate, News of Bahrain
17) About 30% of property investors in Bahrain in 2024 focused on buy-to-let opportunities
In 2024, around 30% of property investors in Bahrain were keen on buy-to-let opportunities.
The residential property market in Bahrain was thriving, thanks to strong government support and growing investor confidence. This boom was especially noticeable in the demand for modern, luxurious properties like high-end apartments and villas. These types of properties are particularly appealing to buy-to-let investors who aim to earn rental income from premium tenants.
According to the Real Estate Regulatory Authority (RERA), there was a 17.92% increase in the value of real estate transactions in the third quarter of 2024. This surge in market activity likely motivated investors to consider various strategies, including buy-to-let, to take advantage of the flourishing real estate scene.
Bahrain's booming tourism industry also played a significant role. With Manama being named the GCC tourism capital for 2024, the influx of tourists boosted the demand for short-term rental accommodations. This scenario provided investors with lucrative opportunities to generate rental income.
Buy-to-let investments became even more attractive as the tourism sector continued to expand, drawing more visitors to the country. This growth in tourism created a steady stream of potential tenants for short-term rentals, enhancing the profitability of such investments.
Sources: AGBI, News of Bahrain, Savills Research
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.