All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.
Yes, the analysis of Manama's property market is included in our pack
Considering buying a nice property in Manama? You're not alone!
Many people are intrigued by Manama's modern architecture and dream of owning a contemporary apartment or a luxurious penthouse there.
Does it make sense from a financial perspective, though? Are property prices increasing in Manama? What is the current trend? Is it better to buy property in Juffair or Seef? And the taxes? Where are the best yields?
We've got it all sorted. No worries.
The SandsOfWealth team has extensively researched this market. As a matter of fact, we've gathered all our findings in a pack. Get it now.
In the lines below, we'll provide you with helpful information.
How's the property market in Manama?
Confused about the property market's status? Everyone has their views. We prefer data and statistics over opinions for accurate assessments.
Types of properties
In Manama, you can find a variety of properties for sale to suit different preferences and needs.
These include apartments with varying numbers of bedrooms, ideal for individuals or small families looking for convenience and modern living; luxurious villas that offer spaciousness and upscale amenities, suitable for those seeking a more lavish lifestyle; commercial properties such as offices or retail spaces for business ventures; and potentially land or plots for those interested in constructing their own customized properties.
Whether you're looking for a comfortable home, an investment opportunity, or a place to start a business, Manama offers a diverse range of properties to choose from.
What's better: buy or rent?
(If you plan to use it yourself and not as a rental)
If Manama is your city of choice, you may be pondering the buy vs. rent decision in this modern capital of Bahrain.
Obviously, it's better to buy if you are looking for an investment that can build equity and provide long-term financial security.
To make a good decision, look at the property price-to-rent ratio. You can think of it as the time it takes for rental income to equal the property's current purchase price.
According to Numbeo, the property price-to-rent ratio in Manama is around 9.31, which is one of the lowest in the world.
It means that, on average, you would only need 9 years of rental payments to actually purchase a property.
Property prices in Manama
On average, according to the last data from Central Informatics Organization (CIO), buying a property in Manama will cost you around $1,840 per square meter.
There are big differences, obviously. A luxury apartment in Juffair may have a higher price per square meter than a house in Saar. We actually give you a more detailed breakdown in our pack for buying property in Manama and in Bahrain.
To give you a better idea, it is 10 times less than the prices in the center of New York.
Moreover, housing prices in Manama are WAY cheaper (-72%) than in Dubai.
The most expensive neighbourhoods in Manama are probably Seef, Juffair, and Adliya, while the cheapest neighbourhoods are likely Hoora and Zinj.
Trends
First and foremost, we have to acknowledge that Bahrain is, nowadays, a relatively stable country. The last Fragile State Index that has been reported for this place is 66.6.
It is something to have in mind when wondering whether it's a good investment to buy a property in Manama.
Besides that, if we look at the IMF's GDP forecasts, Bahrain's economy is expected to soar by 14.2% in the coming 5 years, resulting in an average GDP growth rate of 2.8%.
If you want to invest in real estate in Manama it's a good thing because it means people are getting richer and then housing prices are likely to increase.
Also, in Bahrain, the average GDP per capita has changed by 6.0% over the last 5 years. It's a good performance.
According to this data point, property prices in Manama might go higher in 2024 and also later on.
Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Bahrain right now.
Buying property in Manama
It can be difficult to buy property in Manama due to the lack of reliable and updated information about the process. That's why we have created the pack to buy property in Manama and in Bahrain.
Buying process
Inside our pack, we've outlined the complete buying process, including a detailed breakdown of prices and yields per area, tips for negotiating the price, and information about mortgage options.
Here, we're presenting you with a more straightforward version.
This is the step-by-step process to purchase a property in Manama:
- Determine your budget and requirements for the property.
- Engage a licensed real estate agent in Manama.
- Shortlist properties based on your criteria.
- Visit and inspect the properties physically.
- Negotiate the price and terms with the seller, considering Bahraini customs and market practices.
- Sign a preliminary agreement (MoU) that outlines the property's key details and conditions.
- Conduct due diligence, including verifying the property's title deed and obtaining the Seller's Waqf certificate.
- Draft and sign the sale and purchase agreement, reflecting the negotiated terms.
- Pay the agreed-upon deposit, usually 10% of the property price.
- Apply for a non-citizen ownership permit from the Ministry of Housing.
- Upon approval, pay the remaining balance and transfer property ownership at the Survey and Land Registration Bureau (SLRB).
- Register the property with the Real Estate Regulatory Authority (RERA) to complete the purchase legally.
Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Bahrain.
Make a profitable investment in Manama
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Where to find a property
If you're looking for properties in Manama, these websites can help you in your search:
- Property Finder - A Bahraini real estate website providing property listings for buying, renting, and commercial purposes. It also offers additional search options and a blog section.
- Weetas - A real estate website in Bahrain offering a wide range of property listings for buying, renting, and selling apartments, buildings, lands, office spaces, and villas.
- Savills - A real estate agency offering both residential and commercial property services. These include buying, renting, and selling properties, along with market insights and consultancy.
- KOOHEJI REAL ESTATE - A real estate agency specializing in buying, selling, leasing, and property management services. The agency prioritizes speed and accuracy to meet customers' needs.
- Best Properties Bahrain - A real estate website providing a variety of properties for rent and sale. This includes options like villas, apartments, and commercial properties.
Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Bahrain.
Which properties for which budget?
As mentioned before, the average price per sqm in Manama is $1,840. If you're considering a one-bedroom property covering 60 square meters, it would be around $110,000, while a two-bedroom with 85 square meters would be approximately $156,000.
However, the cost of properties will fluctuate depending on both their characteristics and their location.
Top neighborhoods in Manama typically come with higher price tags. A house in Seef might be around $350,000, while a condo in Juffair could cost about $200,000.
However, there are also places that won't strain your finances as much. You can discover a property in a distant location for $90,000 or a property in Hoora that's priced at just $70,000.
We give more details about property types and areas in our full pack for buying property in Bahrain.
Common mistakes
Here are the main pitfalls when buying property in Manama, Bahrain:
- Foreign ownership restrictions on certain areas and property types.
- Gulf Cooperation Council (GCC) citizens' ownership preferences in designated zones.
- Potential impact of land reclamation projects on seafront properties.
- Strata title complexities for apartment ownership and shared facilities.
- Lack of awareness about "Musataha" land lease agreements and their implications.
- Potential exposure to fluctuating oil prices affecting property market stability.
- Limited availability of freehold properties in prime locations for non-GCC nationals.
- Cultural differences affecting negotiation practices and legal procedures.
We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.
Everything you need to know is included in our Bahrain Property Pack
Living in Manama
Living in Manama is an exciting experience, with a vibrant culture, plenty of job opportunities, and a thriving real estate market.
Cost of living
The cost of living in Manama is generally considered to be high, with rent and food costs being particularly expensive. However, utilities and transportation are relatively inexpensive.
Here are some examples to better understand the cost of living in Manama, Bahrain:
- Bahraini-style karak tea: $1 at a local café in Juffair.
- Rent for a one-bedroom apartment in the Seef district: $900/month.
- Traditional Bahraini fish dish (Machboos) dinner for two in Adliya: $50.
- 1.5-liter bottle of local non-alcoholic Vimto: $2 at a supermarket.
- Electricity bill for an 85m² apartment using EWA (Electricity and Water Authority): $180/month.
- Monthly membership at Elite Fitness Bahrain: $70.
- Ticket to a movie at Vox Cinemas City Centre Bahrain: $12.
- Local dates (500g) at the Manama Souq: $5.
Neighbourhoods
We want to make it easier to understand the information. So, we made a table that shows the different neighborhoods in Manama. For yields, prices and rents, check our property pack.
| Neighborhood | Description | Strengths | Weaknesses |
|---|---|---|---|
Juffair | Juffair is a vibrant and modern neighborhood known for its lively nightlife, numerous dining options, and proximity to popular attractions. | Entertainment options, diverse restaurants, central location. | Noisy at times, high rent prices. |
Adliya | Adliya is an artsy neighborhood with a bohemian atmosphere, featuring art galleries, trendy cafes, and a mix of local and international cuisines. | Cultural scene, artistic vibe, culinary diversity. | Limited parking, can get crowded during events. |
Seef | Seef is a bustling commercial area with numerous shopping malls, luxury hotels, and business towers, making it a central hub for business travelers. | Great shopping opportunities, excellent business infrastructure. | Traffic congestion, lack of green spaces. |
Manama Souq | Manama Souq is a traditional market offering an authentic Arabian shopping experience, selling everything from spices and textiles to souvenirs. | Cultural immersion, unique shopping finds. | Crowded, narrow streets, limited parking. |
Al-Gudaibiya | Al-Gudaibiya is a residential area with a mix of old and modern buildings, providing residents with easy access to various amenities and services. | Close to schools, hospitals, and shopping centers. | Some areas might be less developed, occasional traffic. |
Hoora | Hoora is a lively neighborhood with a variety of cafes, restaurants, and shops, attracting both locals and expats for its dynamic atmosphere. | Popular dining spots, active nightlife. | Parking challenges, busy traffic during peak hours. |
Um Al Hassam | Um Al Hassam is a predominantly residential area with a mix of villas and apartments, offering a peaceful environment and convenient access to essential facilities. | Quiet atmosphere, well-established community. | Limited entertainment options, average public transport. |
Busaiteen | Busaiteen is a coastal neighborhood with beautiful sea views, home to the Bahrain International Airport and offering various waterfront activities. | Proximity to the airport, scenic views. | Can be noisy due to air traffic, limited nightlife. |
Mahooz | Mahooz is a popular residential area known for its upscale apartments and villas, along with various supermarkets and restaurants catering to residents' needs. | High-end housing options, good amenities. | Can be expensive, traffic during rush hours. |
Sanabis | Sanabis is a growing neighborhood close to the Bahrain International Circuit, making it a favorite choice for motorsports enthusiasts. | Proximity to the circuit, developing infrastructure. | Some areas under construction, limited public transport. |
Life in Manama
Manama is the financial and commercial hub of Bahrain and is home to many multinational banks and financial institutions. It has a thriving economy and is an important regional center for trade, manufacturing, and tourism.
What expats usually like the most in Manama is its vibrant nightlife, with plenty of bars and clubs to explore, and its modern infrastructure, with world-class shopping malls, restaurants and other amenities.
A good point for a property investor - Manama has a modern rapid transit system known as the Bahrain Metro.
Access to healthcare in Manama is generally good, with a wide range of public and private healthcare facilities available.
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Renting out in Manama
This section is for you if your goal is to buy a property and rent it out to generate income.
Long-term
Tenant Profiles in Manama
If you decide to buy and rent out to long-term tenants, you should target families, expatriates, and working professionals who are looking for a safe and convenient place to live in Manama. Short-term tenants may include business travelers, tourists, and students.
Here is a little summary table we've made for you.
| Property type and area | Profiles of potential tenants | What they are looking for | Expected monthly rent in $ |
|---|---|---|---|
Apartment in Juffair | Expats, professionals | Modern amenities, nightlife | $800 - $1500 |
Villa in Saar | Families, expats | Spacious living, quiet area | $1500 - $3000 |
Studio in Adliya | Artists, young professionals | Cultural scene, cafes | $500 - $1000 |
Apartment in Seef | Business travelers, expats | Proximity to malls, offices | $1000 - $2000 |
Apartment in Diplomatic Area | Diplomats, professionals | High-end living, security | $1500 - $3000 |
Apartment in Busaiteen | Students, families | Close to universities, affordable | $600 - $1200 |
Apartment in Mahooz | Young professionals, expats | Convenience, city life | $800 - $1500 |
Rental yields
These days, Manama presents attractive opportunities in terms of rental yields. In fact, you can easily achieve yields above 9% due to the high demand for rental properties and the relatively low cost of living.
The best rental yields in Manama come from residential properties located in popular areas such as Juffair, Adliya, and Seef. These areas have high demand for rental properties due to their proximity to the city center and other amenities.
For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.
Short-term
You could also decide to rent short-term to tourists visiting Manama, or business travelers who are in town for a short period of time. Additionally, you could consider renting to expats who are looking for a short-term stay in Manama.
If you decide to go with that option, look for properties in Adliya and Juffair, two of the most popular residential districts in Manama with plenty of short-term rental options.
There are approximately 370 active Airbnb listings in Manama, reflecting a dynamic short-term rental market. The average daily rate stands around $139.
You have the opportunity to generate a nice additional income stream then. According to online testimonials and analytics platform like AirDNA, Guesty and Inside Airbnb, people who offer short-term rentals in Manama can make around $900 per month. Also, the average occupancy rate is estimated at 23%.
Is it worth buying real estate in Manama then?
Buying property in Manama can be a fantastic idea if you're looking for a long-term investment with the potential for equity growth and rental income. The property price-to-rent ratio is low, indicating that it doesn't take too long for rental income to cover the property's purchase price.
Bahrain's stable economy and projected GDP growth suggest that property prices are likely to increase, making it a promising market. Moreover, Manama offers diverse property options, so you can align your investment with your goals. Rental yields in popular areas are attractive, exceeding 9%, providing a steady income stream. Compared to cities like New York and Dubai, property in Manama is quite affordable, making it an attractive choice for diversifying your real estate portfolio.
However, if you're seeking quick returns or are unfamiliar with the intricacies of Bahrain's property market, it might not be the best choice. Real estate investments typically require a longer commitment. Foreign ownership restrictions in certain areas and property types should be thoroughly understood before purchasing.
Additionally, Bahrain's economy is influenced by fluctuating oil prices, so if you're risk-averse and concerned about economic volatility, this should be a consideration. Cultural and legal differences can complicate the buying process if you're not well-informed.
In summary, buying property in Manama can be a smart move for long-term investors seeking stability and rental income, but it's essential to do your research and consider your goals and risk tolerance before diving into this market.
Make sure you understand the real estate market in Manama
Don't rush into buying the wrong property in Bahrain. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.