Authored by the expert who managed and guided the team behind the Bahrain Property Pack

Everything you need to know before buying real estate is included in our Bahrain Property Pack
This article breaks down current rental prices in Bahrain, from studio apartments to family villas across different neighborhoods.
We update this blog post regularly to reflect the latest Bahrain rental market data and trends.
Whether you're an expat relocating to Manama or an investor analyzing rental yields, you'll find practical numbers here.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Bahrain.
Insights
- Bahrain's rental market is heavily expat-driven, with neighborhoods like Juffair, Amwaj Islands, and Seef seeing 70% or more of tenants coming from abroad.
- The 10% municipality tax on rentals to expatriates effectively reduces landlord net yields by roughly one percentage point compared to headline figures.
- Apartments with "inclusive EWA" (electricity and water) packages in Bahrain can command 10 to 15% higher rents because tenants avoid unpredictable summer utility bills.
- Waterfront properties in Bahrain Bay and Reef Island typically rent for 30 to 50% more than similar units in older inland neighborhoods.
- Vacancy rates in Bahrain's premium rental stock hover around 10 to 12%, but older buildings in less desirable locations can exceed 20%.
- Bahrain's rental market shows strong seasonality, with August through October and January through February being peak months due to corporate relocations.
- Furnished apartments in Bahrain's expat zones fetch 20 to 30% more monthly rent than unfurnished units.
- Unlike Dubai or Abu Dhabi, Bahrain has no personal income tax on rental earnings, though the municipality tax on expat rentals is a unique cost many investors overlook.

What are typical rents in Bahrain as of 2026?
What's the average monthly rent for a studio in Bahrain as of 2026?
As of January 2026, the average monthly rent for a studio apartment in Bahrain is around BHD 260 ($690 USD or €635 EUR).
Most studios in Bahrain fall within BHD 180 to BHD 350 per month ($475 to $930 USD or €440 to €860 EUR), depending on building quality and location.
Main factors causing studio rents in Bahrain to vary include waterfront proximity, whether utilities are included, building age, and location in expat-heavy neighborhoods like Juffair versus older districts like Hoora.
What's the average monthly rent for a 1-bedroom in Bahrain as of 2026?
As of January 2026, the average monthly rent for a 1-bedroom apartment in Bahrain is around BHD 380 ($1,005 USD or €930 EUR).
Most 1-bedroom apartments in Bahrain range from BHD 280 to BHD 500 per month ($740 to $1,325 USD or €685 to €1,225 EUR), with significant variation based on location.
Neighborhoods like Gudaibiya and Hoora have the cheapest 1-bedroom rents, while Reef Island, Bahrain Bay, and Amwaj Islands command the highest prices, sometimes double the older district rates.
What's the average monthly rent for a 2-bedroom in Bahrain as of 2026?
As of January 2026, the average monthly rent for a 2-bedroom apartment in Bahrain is around BHD 520 ($1,380 USD or €1,275 EUR).
Most 2-bedroom apartments in Bahrain rent within BHD 380 to BHD 700 per month ($1,005 to $1,855 USD or €930 to €1,715 EUR), reflecting building quality and neighborhood prestige.
The cheapest 2-bedroom rents are in areas like Isa Town and Tubli, while the most expensive are in Bahrain Bay, Reef Island, and waterfront Amwaj Islands towers.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Bahrain.
What's the average rent per square meter in Bahrain as of 2026?
As of January 2026, the average rent per square meter in Bahrain is around BHD 5.5 monthly ($14.50 USD or €13.50 EUR per sqm).
Across Bahrain, rent per square meter ranges from BHD 3.5 in older areas to BHD 8+ in premium waterfront developments ($9 to $21 USD or €8.50 to €19.50 EUR monthly).
Compared to other Gulf cities, Bahrain's rent per square meter is notably lower than Dubai or Abu Dhabi, making it attractive for expats seeking GCC value.
Property characteristics pushing rent above average include sea views, newer construction, branded residences, inclusive utilities, and proximity to Seef or Bahrain Bay amenities.
How much have rents changed year-over-year in Bahrain in 2026?
As of January 2026, apartment rents in Bahrain have increased approximately 3% year-over-year, while villa rents show more modest growth around 2%.
Main factors driving rent changes include steady expat demand in prime districts, limited new quality supply, and continued economic stability from government diversification.
This year's rent growth mirrors the previous year's trend, with moderate increases concentrated in well-located, newer buildings rather than market-wide surges.
What's the outlook for rent growth in Bahrain in 2026?
As of January 2026, rent growth in Bahrain is projected between 2% and 5%, with waterfront and new-build segments seeing the strongest momentum.
Key factors influencing Bahrain rent growth include continued expat inflows, the Golden Visa program attracting foreign residents, and utility costs making energy-efficient buildings more desirable.
Neighborhoods expected to see the strongest rent growth include Reef Island, Bahrain Bay, Diyar Al Muharraq, and Amwaj Islands, where newer inventory creates premium positioning.
Risks that could alter projections include regional geopolitical uncertainty, slowdowns in corporate relocations, or sudden supply increases outpacing demand.

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.
Which neighborhoods rent best in Bahrain as of 2026?
Which neighborhoods have the highest rents in Bahrain as of 2026?
As of January 2026, the three neighborhoods with highest average rents in Bahrain are Bahrain Bay, Reef Island, and Amwaj Islands, where 2-bedrooms typically start at BHD 650 to BHD 900 monthly ($1,720 to $2,385 USD or €1,590 to €2,205 EUR).
These neighborhoods command premiums due to waterfront locations, newer high-quality construction, modern amenities, and proximity to business and lifestyle hubs.
Tenants in these high-rent Bahrain neighborhoods are typically senior expat professionals in finance, management, or aviation, plus corporate-sponsored relocations and high-income couples.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Bahrain.
Where do young professionals prefer to rent in Bahrain right now?
The top three neighborhoods where young professionals rent in Bahrain are Juffair, Adliya, and Seef, offering convenience, nightlife, and walkable amenities.
Young professionals in these Bahrain neighborhoods typically pay BHD 300 to BHD 450 monthly ($795 to $1,190 USD or €735 to €1,100 EUR) for a 1-bedroom.
Amenities attracting young professionals include restaurant and cafe proximity, gym facilities, office access, and a social atmosphere with other expats.
By the way, you will find a detailed tenant analysis in our property pack covering the real estate market in Bahrain.
Where do families prefer to rent in Bahrain right now?
The top three neighborhoods where families rent in Bahrain are Saar, Janabiya, and Budaiya, located in the Northern Governorate with quieter streets and more space.
Families renting 2-3 bedroom villas in these Bahrain neighborhoods typically pay BHD 550 to BHD 900 monthly ($1,460 to $2,385 USD or €1,350 to €2,205 EUR).
Features attracting families include larger property sizes, gardens, international school proximity, safer residential environments, and easy access to supermarkets and healthcare.
Top schools near these family-friendly Bahrain neighborhoods include St. Christopher's School, the British School of Bahrain, and Bahrain Bayan School.
Which areas near transit or universities rent faster in Bahrain in 2026?
As of January 2026, areas near transit hubs or universities renting fastest in Bahrain are the Sakhir corridor (University of Bahrain), Salmaniya (major hospitals), and central Manama/Juffair.
Properties in these high-demand Bahrain areas typically stay listed 20 to 35 days, compared to 45 to 60 days in less convenient locations.
The typical rent premium for properties near universities or employment hubs in Bahrain ranges from BHD 30 to BHD 60 monthly ($80 to $160 USD or €75 to €145 EUR) above comparable units further away.
Which neighborhoods are most popular with expats in Bahrain right now?
The top three neighborhoods popular with expats in Bahrain are Juffair, Amwaj Islands, and Seef/Al Seef, housing a large share of Bahrain's expatriate population.
Expats in these Bahrain neighborhoods typically pay BHD 350 to BHD 600 monthly ($925 to $1,590 USD or €860 to €1,470 EUR) for 1 to 2 bedroom apartments.
Features attracting expats include English-speaking communities, international restaurants and shops, furnished apartment availability, and amenities like pools, gyms, and 24-hour security.
Expat communities most represented include professionals from India, the Philippines, the UK, the US, and other GCC countries in finance, aviation, hospitality, and oil services.
And if you are also an expat, you may want to read our exhaustive guide for expats in Bahrain.
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Who rents, and what do tenants want in Bahrain right now?
What tenant profiles dominate rentals in Bahrain?
The top three tenant profiles dominating Bahrain's rental market are expat professionals (single and couples), expat families, and young local Bahraini professionals.
Expat professionals represent roughly 50 to 60% of Bahrain's rental market, expat families account for 25 to 30%, and local renters make up the remaining 15 to 20%.
Expat professionals seek furnished 1 to 2 bedroom apartments in convenient locations, expat families look for 3-bedroom villas near schools, and young locals prefer affordable studios or 1-bedrooms.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Bahrain.
Do tenants prefer furnished or unfurnished in Bahrain?
In Bahrain's main expat districts, roughly 60 to 70% of tenants prefer furnished apartments, while family villa markets favor unfurnished units for longer leases.
The typical rent premium for furnished apartments in Bahrain is BHD 60 to BHD 120 monthly ($160 to $320 USD or €145 to €295 EUR), a 20 to 30% uplift.
Tenant profiles preferring furnished rentals include short-term corporate assignees, newly arrived expats, and single professionals valuing convenience.
Which amenities increase rent the most in Bahrain?
The top five amenities increasing rent most in Bahrain are inclusive EWA packages, sea/waterfront views, pool and gym access, 24-hour security with parking, and modern central AC.
Inclusive utilities add BHD 30 to BHD 50 monthly ($80 to $130 USD), sea views command BHD 80 to BHD 150 ($210 to $400 USD), and full building amenities add BHD 50 to BHD 100 ($130 to $265 USD).
In our property pack covering the real estate market in Bahrain, we cover what are the best investments a landlord can make.
What renovations get the best ROI for rentals in Bahrain?
The top five renovations with best ROI in Bahrain are kitchen and bathroom refreshes, AC upgrades, improved window shading, modern lighting with smart locks, and fresh neutral paint.
A kitchen refresh costs BHD 800 to BHD 2,000 ($2,120 to $5,300 USD) and can increase rent by BHD 30 to BHD 60 monthly, while AC upgrades costing BHD 300 to BHD 600 add BHD 20 to BHD 40.
Renovations with poor ROI in Bahrain include overly luxurious finishes in mid-market buildings, swimming pool additions to villas, and extensive garden landscaping.

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 strong is rental demand in Bahrain as of 2026?
What's the vacancy rate for rentals in Bahrain as of 2026?
As of January 2026, the estimated vacancy rate for mid-to-high-end rental apartments in Bahrain is around 10 to 12%, with well-managed waterfront towers tighter and older stock higher.
Across Bahrain, vacancy rates range from 5 to 8% in prime expat areas like Juffair and Amwaj to 15 to 20% in older buildings in less desirable inland districts.
Current vacancy is consistent with historical averages, as the market maintains moderate levels due to steady expat demand balanced against ongoing new supply.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Bahrain.
How many days do rentals stay listed in Bahrain as of 2026?
As of January 2026, the average days rentals stay listed in Bahrain is approximately 35 to 45 days for well-priced properties in desirable locations.
Across property types and neighborhoods, days on market ranges from 25 to 35 days in Juffair, Seef, Amwaj, and Reef Island, to 60+ days for overpriced or older stock.
Current days-on-market is roughly similar to one year ago, as the market has remained stable without dramatic demand or supply shifts.
Which months have peak tenant demand in Bahrain?
Peak months for tenant demand in Bahrain are August through October and January through February, when corporate relocations and school transitions drive activity.
Factors driving seasonal patterns include expat job transfer timing, families moving before school terms, and new-year corporate budget cycles triggering relocations.
Months with lowest tenant demand in Bahrain are June and July when summer heat peaks and expats travel abroad, plus Ramadan when moving activity slows.
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An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What will my monthly costs be in Bahrain as of 2026?
What property taxes should landlords expect in Bahrain as of 2026?
As of January 2026, Bahrain has no typical annual property tax, but landlords renting to expatriates must pay a 10% municipality tax on rental income, meaning BHD 40 monthly ($106 USD or €98 EUR) on BHD 400 rent.
This municipality tax scales with rent level: a landlord earning BHD 300 monthly pays BHD 30 ($80 USD), while one earning BHD 700 pays BHD 70 ($185 USD).
The tax is calculated as 10% of the rental amount when the tenant is an expatriate, payable by the landlord.
Please note that, in our property pack covering the real estate market in Bahrain, we cover what exemptions or deductions may be available to reduce property taxes for landlords.
What maintenance budget per year is realistic in Bahrain right now?
A realistic annual maintenance budget for a rental apartment in Bahrain is BHD 350 to BHD 550 ($925 to $1,460 USD), while villas may require BHD 800 to BHD 1,500 ($2,120 to $3,975 USD).
Costs vary by property age: newer buildings require BHD 250 to BHD 400 yearly, while older properties or villas with gardens and multiple ACs cost BHD 600 to BHD 1,500+.
Landlords in Bahrain typically set aside 8 to 12% of annual rental income for maintenance, covering AC servicing, minor repairs, and wear-and-tear.
What utilities do landlords often pay in Bahrain right now?
Utilities landlords most commonly pay in Bahrain are electricity and water (EWA), typically offered as "inclusive" packages in furnished apartments targeting expats.
Monthly cost for landlord-paid utilities in Bahrain ranges from BHD 40 to BHD 100 ($106 to $265 USD) for 1-2 bedroom apartments, with summer months significantly higher.
Common practice is that unfurnished apartments have tenants pay EWA directly, while furnished units often include utilities up to a cap to attract short-term expat tenants.
How is rental income taxed in Bahrain as of 2026?
As of January 2026, Bahrain has no personal income tax on rental income, but the 10% municipality tax applies to expat rentals, and real estate rental is VAT-exempt.
Deductions are limited since there's no income tax; the municipality tax is calculated on gross rent, meaning expenses don't reduce the tax base.
A common tax mistake in Bahrain is failing to register and pay the 10% municipality tax on expat rentals, which can result in penalties and back-taxes.
We cover these mistakes, among others, in our list of risks and pitfalls people face when buying property in Bahrain.

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.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Bahrain, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Knight Frank Bahrain Market Review | Global real estate consultancy publishing structured market reviews with clear metrics. | We used it for area-by-area lease-rate benchmarks and rent direction. We identified which neighborhoods behave like expat enclaves. |
| CBRE Bahrain Market Review Q2 2023 | Top-tier global real estate advisor with primary research reports. | We cross-checked rent direction and quoted rent concepts. We supported narratives about new supply in prime zones. |
| Bahrain Open Data Portal (CPI % Changes) | Official government open data platform managed by the Information and eGovernment Authority. | We used it as the official anchor for housing and rent inflation measurement. We cross-checked rent-growth assumptions. |
| Bahrain Open Data Portal (CPI Index Numbers) | Companion official dataset publishing CPI index levels by division and group. | We ensured rent estimates don't imply unrealistic inflation. We aligned timing with Bahrain's CPI base. |
| Bahrain National Portal Open Government Data | Official government portal explaining Bahrain's open data governance. | We justified methodology choice of leaning on official datasets. We supported source compliance in the article. |
| Bahrain Ministry of Finance Economic Report 2024 | Bahrain's finance ministry publishing official macroeconomic reporting. | We set the macro backdrop including inflation and growth. We avoided over-crediting private portals for economy-wide claims. |
| World Bank Macro Poverty Outlook Bahrain | Major international organization producing standardized country macro outlooks. | We framed the 2026 outlook without relying on market rumors. We sanity-checked rent-growth outlook against the broader economy. |
| IMF Bahrain Country Page | IMF's official country hub consolidating engagement and publications. | We used it as authoritative reference for macro conditions affecting demand. We cross-referenced with World Bank and Ministry of Finance. |
| PwC Tax Summaries Bahrain | Major global professional services firm summarizing local tax rules. | We stated the 10% municipality tax on expat rentals. We kept monthly costs concrete and verifiable. |
| PwC NBR VAT Real Estate Guide | PwC technical note referencing Bahrain's National Bureau for Revenue guidance. | We supported that real estate rental is VAT-exempt. We avoided vague VAT claims without support. |
| EWA Tariffs | Official utility provider publishing current tariff rules and bands. | We explained why inclusive EWA packages change tenant willingness to pay. We shaped realistic utility responsibility assumptions. |
| Property Finder Bahrain | Major Bahrain housing portal useful for live market range checks. | We sanity-checked asking rent ranges to keep estimates market-realistic. We treated it as secondary evidence anchored to consultancy benchmarks. |
| Bayut Bahrain | Major regional property platform broadening listing samples. | We cross-checked that rent bands aren't driven by one-site bias. We used it as a market-range triangulation tool only. |
| Trading Economics Bahrain CPI Housing | Widely used macro-data aggregator mirroring official statistical releases. | We used it as backup cross-check for housing CPI direction. We kept official iGA data as the methodological anchor. |
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