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Yes, the analysis of Manama's property market is included in our pack
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 neighborhoods in Manama 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 Manama in 2025?
Yes, property prices in Manama 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 Manama 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 Manama’s price growth are strong and persistent.
Demand, particularly in the luxury and commercial sectors, continues to outpace supply, making significant price drops unlikely. Additionally, Manama's strategic location and status as a financial hub in the Gulf region continue to attract buyers and investors.
Signals pointing to a property price increase in Manama
Here are some factors suggesting prices could increase:
The ongoing economic diversification efforts in Bahrain are expected to boost various sectors, including real estate, leading to increased demand for both residential and commercial properties in Manama.
Foreign investment in Bahrain is on the rise, with Manama being a focal point for international businesses setting up regional offices, which is likely to drive up demand for commercial real estate.
Government initiatives aimed at improving infrastructure, such as transportation and utilities, are expected to enhance the attractiveness of Manama as a place to live and work, thereby increasing property values.
The tourism sector in Bahrain is projected to grow, with Manama being a key destination. This growth is likely to increase demand for short-term rental properties, pushing up prices in the hospitality real estate market.
Manama's strategic location as a gateway to the Gulf Cooperation Council (GCC) markets makes it an attractive hub for businesses, which is expected to increase demand for office spaces and residential properties for expatriates.
The introduction of new real estate regulations aimed at protecting investors and ensuring transparency is likely to boost investor confidence, leading to increased property transactions and higher prices.
A stable political environment and supportive government policies are expected to continue attracting both local and foreign investors to the Manama real estate market.
Signals pointing to a property price decrease in Manama
Here are some factors suggesting prices could fall:
Rising inflation and cost of living could impact the purchasing power of potential buyers, particularly in the middle-income segment, leading to reduced demand for certain property types.
Geopolitical tensions in the region could create uncertainty, potentially affecting investor confidence and slowing down real estate transactions.
An oversupply of certain property types, particularly in the residential sector, could lead to increased competition among sellers, potentially driving prices down in some areas.
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If property prices go up in Manama, how much would they increase by?
If real estate prices in Manama were to rise in 2025, the increase would likely be between 3% to 7% of their 2024 values.
Typically, real estate in emerging markets like Manama 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 Manama 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) |
|---|---|---|---|---|
| Modern Apartment (100 sqm / 1,076 sqft) | BHD 100,000 | BHD 103,000 | BHD 105,000 | BHD 107,000 |
| Luxury Villa (300 sqm / 3,229 sqft) | BHD 500,000 | BHD 515,000 | BHD 525,000 | BHD 535,000 |
| Studio (50 sqm / 538 sqft) | BHD 50,000 | BHD 51,500 | BHD 52,500 | BHD 53,500 |
| Penthouse (200 sqm / 2,153 sqft) | BHD 300,000 | BHD 309,000 | BHD 315,000 | BHD 321,000 |
| Townhouse (150 sqm / 1,615 sqft) | BHD 200,000 | BHD 206,000 | BHD 210,000 | BHD 214,000 |
| Investment Property (80 sqm / 861 sqft) | BHD 80,000 | BHD 82,400 | BHD 84,000 | BHD 85,600 |
| Loft (120 sqm / 1,292 sqft) | BHD 150,000 | BHD 154,500 | BHD 157,500 | BHD 160,500 |
Everything you need to know is included in our Property Pack for Manama
If real estate prices go up in Manama, which areas are likely to see the biggest increases?
Today, people who want to move to Manama are looking for a blend of traditional charm and modern amenities, which Seef District 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 Manama market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Seef District | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Amwaj Islands | High | Expected rise due to limited housing stock, upcoming renovations to waterfront properties, and growing demand for prime properties in this exclusive area. |
| Juffair | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Diplomatic Area | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Adliya | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Muharraq | Medium | Investment in local infrastructure, such as the extension of road networks and renovation of historic areas, is boosting long-term value. |
| Riffa | 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 office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Isa Town | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Diyar Al Muharraq | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Bahrain Bay | High | Upcoming high-profile commercial projects are driving a renewed focus on this central, waterfront location. |
-The best areas to buy a property in Manama
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Manama?
In 2025, Manama real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, 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 Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Manama are seeing increased interest. Proximity to green spaces and schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In dense cities like Manama, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Manama's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the city’s green goals, leading to price appreciation in this category.
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