Yes, the analysis of Manama's property market is included in our pack
The question of 'the best neighborhood to buy a property in Manama' does not have a one-size-fits-all answer.
Some of you are buying to live there, while others want to make the best investment possible. Individual preferences and circumstances matter.
That’s why the article below is covering every intent.
At SandsOfWealth, when we write a blog post or when we update our our property pack for Bahrain, we want to bring solutions and cover different aims in a clear and organized way.
Enjoy the read, and please remember that we are not financial or investment experts. This article is for informational purposes only.
To improve the readability and user-friendliness of this article, we will categorize neighborhoods in Manama into various groups, including budget-friendly options, emerging hotspots, and areas with high rental demand, among others. Consequently, some neighborhoods may appear in multiple categories and be mentioned several times throughout the article.
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How is the real estate market in Manama?
The real estate market in Manama, the capital city of Bahrain, is a vibrant and dynamic sector.
This dynamism is reflected in a specific data point: the consistent year-over-year increase in property values and demand, especially in upscale neighborhoods and commercial areas.
One of the major strengths of Manama is its unique blend of modernity and rich cultural heritage. Unlike many cities, Manama offers a harmonious mix of contemporary skyscrapers and historic sites like the Bahrain Fort and the Bahrain National Museum.
This blend attracts a diverse range of buyers, from those interested in modern luxury to those who appreciate historical significance.
Foreign interest in Manama's real estate is particularly high due to Bahrain's liberal business environment and welcoming attitude towards expatriates.
The city's strategic location as a financial hub in the Middle East, coupled with its relatively liberal social environment compared to neighboring countries, makes it an attractive destination for foreign investors and professionals.
Buyers in Manama are quite varied. They range from local families seeking residential properties to international investors eyeing commercial real estate. The common thread among these buyers is their search for quality and value in a city that offers a high standard of living combined with cultural richness.
A unique aspect of properties in Manama is their integration of modern amenities with traditional Bahraini architectural elements. This is something you don't often see elsewhere – properties that offer state-of-the-art facilities while maintaining a distinct local aesthetic.
This architectural fusion not only enhances the visual appeal of properties but also ensures they retain a unique character.
Looking to the future, properties in Manama are expected to gain value for several reasons.
Firstly, the city's ongoing development projects, like the Bahrain Bay and Diyar Al Muharraq, are transforming it into a more modern and cosmopolitan city.
Secondly, the government's efforts to diversify the economy beyond oil are likely to attract more businesses and expatriates, further driving demand for real estate.
Finally, Manama's cultural and historical significance, combined with its modern amenities, ensures it remains an attractive destination for both residents and investors.
Top neighborhoods in Manama to consider for living
Areas in Manama that are budget-friendly
If you're looking to buy property in Manama on a budget, there are a few neighborhoods you might want to consider.
Here is a summary table. Below, we will give more details.
| Neighborhood | Characteristics | Property Types | Average Prices | Resident Demographics | Strengths | Weaknesses |
|---|---|---|---|---|---|---|
| Juffair | Modern apartments, vibrant nightlife | Apartments, Villas | Apartments from 90,000 BHD, Villas from 300,000 BHD | Mix of expats and locals | Vibrant culture, ongoing development | Potentially too busy for some |
| Adliya | Cultural hub, artistic environment | Apartments | Three-bedroom apartment: 450 BHD/month | Mix of expats and locals | Cultural vibrancy | Specific property prices not detailed |
| Hoora | Diverse, nightlife center | Apartments, Villas | Apartments from 350 BHD/month, Villas from 900 BHD/month | Mix of expats and locals | Popular among tourists and locals | Busy nightlife area |
Juffair
Known for its modern apartments and vibrant nightlife, Juffair offers affordable housing despite its upscale ambiance.
This area is undergoing significant real estate development, including new shopping centers and residential towers, hinting at a promising future value appreciation.
Properties range from luxurious apartments starting at 90,000 BHD to villas priced from 300,000 BHD, catering to diverse budgets. The average price per square meter in Juffair is about 70.23 BHD, but it can vary.
Adliya
This cultural hub, brimming with art galleries, restaurants, and cafes, offers a lively, artistic environment with surprisingly affordable housing prices.
The average rental price for a three-bedroom apartment in Adliya is around 450 BHD per month, inclusive of utilities.
The area's cultural vibrancy could boost property values in the future.
Hoora
Known for its diverse population and being a nightlife center, Hoora offers low property prices with the advantage of being close to the city center.
Average rental prices range from 350 BHD for a two-bedroom apartment to 900 BHD for a four-bedroom villa per month in Hoora.
Its popularity among tourists and locals alike, especially on Exhibitions Avenue, suggests potential for property value growth.
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Areas in Manama that are popular and upscale
When looking to buy property in Manama, three neighborhoods stand out as upscale and popular choices. These neighborhoods each have their unique character and draw different types of residents.
| Neighborhood | Average Price/sqm | Property Type | Resident Demographics | Strengths | Weaknesses |
|---|---|---|---|---|---|
| Reef Island | High | Luxury Apartments, Villas | Affluent Individuals, Expats | Exclusivity, Privacy | High Cost, Isolation |
| Amwaj Islands | High | Waterfront Properties | Locals, Expatriates | Vibrant Community, Amenities | Traffic, Distance from Central |
| Seef | High | Modern Apartments, Commercial Spaces | Business Professionals, Families | Central Location, Abundant Amenities | Noise, Busy Nature |
Reef Island
This island is the epitome of luxury in Manama.
Properties in Reef Island are quite expensive due to the exclusivity and privacy it offers. The average price per square meter in Reef Island can be quite steep, reflecting the high-end market it caters to. You'll find mainly luxury apartments and villas, often with stunning sea views.
The residents are mostly affluent individuals, including expats and local elites. It's expected to remain a top choice for the wealthy, maintaining its hype due to its unique position and amenities like high-end restaurants and private beaches.
The strengths lie in its exclusivity and high standard of living, but the downside is the high cost and the fact that it might feel isolated from the city's hustle and bustle.
Amwaj Islands
Known for its beautiful waterfront properties, Amwaj Islands is another upscale area popular among property buyers.
This area is pricey, but it offers a mix of apartments and villas with fantastic sea views. The community is diverse, with a mix of locals and expatriates, and the area buzzes with cafes, shops, and leisure activities.
Its popularity is likely to persist, given its blend of lifestyle and location.
The strengths include a vibrant community life and modern amenities, but the weaknesses are the potential for traffic congestion and the distance from central Manama.
Seef
Seef is a commercial hub, famous for its shopping malls and business centers.
Property prices in Seef are high, reflecting the demand for the area's modern apartments and commercial spaces. The average price per square meter in Seef is on the higher side, indicative of its urban appeal.
Seef attracts a mix of business professionals and families, and its continued development suggests that its popularity will hold steady.
The strengths are its central location and abundance of amenities, while the weaknesses include noise and the busy nature of the district, which might not appeal to those seeking tranquility.
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.
Areas in Manama that emerge as new hotspots
Let's explore these emerging neighborhoods in Manama that, according to our local partners and our customers, are getting quite a bit of buzz lately.
| Neighborhood | Current Price Trend | Resident Demographics | Strengths | Weaknesses |
|---|---|---|---|---|
| Juffair | Affordable, Rising | Young Professionals, Expatriates | Lively Atmosphere, Affordability | Ongoing Construction, Potential Overcrowding |
| Adliya | Reasonable, Rising | Creative, Diverse Crowd | Artistic Vibe, Community Life | Limited Parking, Noise Issues |
| Busaiteen | Lower, Increasing | Locals, Expatriates, Students | Community Feel, Proximity to Facilities | Traffic, Changing Dynamics |
Juffair
Initially a quiet residential area, Juffair has transformed into a vibrant and trendy neighborhood.
Its growing popularity stems from its recent developments, including modern apartment complexes and a bustling nightlife scene. Prices in Juffair are more affordable compared to traditional upscale areas, mainly due to its ongoing development phase.
Over the coming years, prices are expected to rise as the area becomes more established. It's attracting a younger crowd, especially professionals and expatriates, due to its lively atmosphere and range of amenities.
Its strengths include the lively culture and affordability, but the weaknesses are the ongoing construction and potential for overcrowding as it gains popularity.
Adliya
Known for its artistic vibe, Adliya has evolved from a quiet residential area to a cultural hotspot.
It's becoming increasingly popular for its unique blend of art galleries, cafes, and boutiques. While prices are currently more reasonable than in more established areas, they're expected to rise as Adliya's popularity grows.
This neighborhood is drawing in a creative and diverse crowd, attracted by its cultural richness.
Its strengths are its unique artistic character and vibrant community life, but the weaknesses include limited parking and potential noise issues due to the bustling nightlife.
Busaiteen
Once a traditional area, Busaiteen is now emerging as a sought-after location for property buyers.
Its development has been boosted by the presence of medical and educational institutions, making it a hub for professionals and students. Property prices are comparatively lower in Busaiteen but are on an upward trajectory due to the area's growing appeal.
Busaiteen attracts a mix of locals, expatriates, and students.
Its strengths lie in its community feel and proximity to key facilities, but it also faces challenges like traffic congestion and a changing neighborhood dynamic.
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Top neighborhoods in Manama to invest in property
Areas in Manama with a strong rental demand
If you're considering buying real estate in Manama for renting it out, these neighborhoods with high demand for rentals should be considered.
| Neighborhood | Tenant Profile | Property Type | Average Rent (2-3 Bedrooms) | Rental Yield | Tips for Investment | Weaknesses |
|---|---|---|---|---|---|---|
| Juffair | Expatriates, Military | Furnished Apartments | BD 600 - BD 800 | 6-8% | Near Attractions, Sea Views | High Supply, Crowded |
| Seef | Professionals, Families | Apartments, Villas | BD 800 - BD 1,000 | 5-7% | Near Business Centers | Competition from New Developments |
| Amwaj Islands | Expatriates, Tourists | Luxury Apartments, Villas | BD 700 - BD 900 | 6-7% | Waterfront Views, Unique Designs | Economic Sensitivity, Location |
Juffair
Juffair is a top choice for expatriates, particularly those working in the military or in international businesses.
This area is popular due to its modern infrastructure, offering a wide range of amenities like shopping malls, restaurants, and nightlife options. Tenants in Juffair are usually looking for furnished apartments, with a preference for modern facilities like gyms and swimming pools.
Rental income for a two-bedroom apartment in Juffair can range from BD 600 to BD 800 per month. The rental yield in Juffair is quite attractive, often around 6-8%. If you're considering investing in Juffair, focus on properties near main attractions or with sea views, as these tend to attract higher rents and less vacancy.
However, the area can be crowded, and the high supply of apartments might impact rental prices in the future.
Seef
Seef is another high-demand area, known for its commercial importance and proximity to business centers.
It attracts professionals and families, with a preference for larger apartments or villas. The rental income for a three-bedroom apartment in Seef can be around BD 800 to BD 1,000 per month, with yields hovering around 5-7%. Properties close to shopping centers and offices are in higher demand.
When investing in Seef, consider properties that offer unique features like a good view or additional amenities, as these can command higher rents.
However, be aware of the competition from new developments, which might affect rental stability.
Amwaj Islands
Amwaj Islands is sought after for its luxurious lifestyle and waterfront properties.
It's popular among expatriates and tourists who seek tranquility and high-end living. Properties in Amwaj Islands are mostly high-end apartments and villas, with rental prices for a two-bedroom apartment ranging from BD 700 to BD 900.
The rental yield in Amwaj Islands is around 6-7%. Investing in properties with waterfront views or unique architectural designs can yield higher rents and attract long-term tenants.
However, the high-end market can be more sensitive to economic fluctuations, and the relatively remote location may not appeal to all tenants.
Don't lose money on your property in Manama
100% of people who have lost money in Bahrain have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
Areas in Manama where property prices might increase in the future
In these areas in in Manama you can still find properties at a reasonable price, with room for appreciation as the neighborhoods develop.
| Neighborhood | Tenant Profile | Property Type | Average Price Per Night | Tips for Investment | Weaknesses |
|---|---|---|---|---|---|
| Adliya | Tourists, Cultural Enthusiasts | Furnished Apartments, Boutique Hotels | BD 50 - BD 70 | Unique Design, Near Dining Areas | Noise, Limited Parking |
| Bahrain Bay | Business Travelers, Luxury Tourists | High-end Apartments, Serviced Residences | BD 80 - BD 120 | Panoramic Views, Business Proximity | Economic Fluctuations, Lack of Community |
| Reef Island | High-end Tourists, Peace Seekers | Luxury Apartments, Villas | BD 100 - BD 150 | Unique Amenities, Exceptional Views | Isolation, Higher Price Points |
Adliya
Adliya is a cultural hub, attracting tourists and short-term visitors interested in art, dining, and nightlife.
The demand in Adliya is for furnished apartments or boutique hotels that offer a local cultural experience. Amenities like Wi-Fi, proximity to cafes, and artistic decor are highly valued.
The average price for a one-night stay in Adliya can range from BD 50 to BD 70. For better rental income, properties with unique interior designs or those located near popular dining areas are ideal.
However, noise levels and limited parking can be downsides for some tenants.
Bahrain Bay
Bahrain Bay is a newly developed area, popular for its modern architecture and upscale living.
Short-term tenants in Bahrain Bay are usually business travelers or luxury tourists. They prefer high-end apartments or serviced residences with amenities like business centers, gyms, and pools.
The average price per night in Bahrain Bay can be around BD 80 to BD 120. Properties with panoramic views or proximity to business hubs can command higher prices.
However, the high-end market may fluctuate with economic changes, and the area might lack a sense of community.
Reef Island
Reef Island is known for its serene environment and luxury offerings, making it a top choice for high-end tourists or people seeking a peaceful retreat.
The demand in Reef Island is for luxurious apartments or villas with amenities like private beaches, spas, and fine dining.
Prices per night in Reef Island can range from BD 100 to BD 150. Investing in properties with unique amenities or exceptional views can attract premium rents.
However, the isolated nature of the island and higher price points may limit the tenant pool.
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.