Authored by the expert who managed and guided the team behind the Bahrain Property Pack
Yes, the analysis of Manama's property market is included in our pack
Property prices in Manama are expected to rise between 3% to 7% in 2025, driven by economic diversification and strong foreign investment. As we reach mid-2025, Manama's real estate market shows robust fundamentals with luxury properties leading price appreciation while supply increases are creating opportunities for strategic buyers.
If you want to go deeper, you can check our pack of documents related to the real estate market in Bahrain, based on reliable facts and data, not opinions or rumors.
Manama's property market is experiencing moderate growth with luxury segments outperforming mid-range properties. Foreign investment reached record levels of $6.8 billion in 2023, supporting price stability and growth prospects.
Key areas like Seef, Juffair, and Amwaj Islands are seeing the strongest price appreciation, with annual growth ranging from 4% to 8% depending on property type and location.
| Market Indicator | Current Status (2025) | 2026 Forecast | Key Drivers |
|---|---|---|---|
| Overall Price Growth | 3-7% annual increase | 5-8% projected growth | Economic diversification, foreign investment |
| Luxury Properties | 6-8% annual growth | 7-10% projected | High-end demand, limited supply |
| Average Price/m² (City Center) | BHD 975-1,250/m² | BHD 1,025-1,350/m² | Infrastructure development, tourism growth |
| Foreign Investment | $6.8B (2023 record) | $7.5B projected | Golden Visa programs, freehold zones |
| Rental Yields | 5-8% average | 5.5-8.5% projected | Strong expat demand, tourism capital status |
| Transaction Volume | 17.92% increase (Q3 2024) | 15-20% growth expected | Market confidence, regulatory improvements |
| Fastest Growing Areas | Seef (+6%), Amwaj Islands (+8%) | Continued outperformance | Limited supply, premium positioning |
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
What is the current average price per square meter in Manama in 2025?
Property prices in Manama vary significantly by location and property type, with city center apartments averaging BHD 975-1,250 per square meter as of June 2025.
In premium districts, Seef commands the highest prices at BHD 800-1,250 per square meter for apartments, reflecting its status as Manama's most expensive residential area. Amwaj Islands follows closely with waterfront properties priced between BHD 740-1,100 per square meter, while Juffair offers more affordable options at BHD 700-800 per square meter.
For specific property types, three-bedroom apartments in central Manama average BHD 765-787 per square meter, while four-bedroom units command BHD 915-1,016 per square meter. Luxury developments and properties with sea views typically price 20-30% above these averages.
Compared to regional competitors, Manama remains one of the more affordable GCC capitals. The average city center price of approximately $2,589 per square meter (BHD 975) is significantly lower than Dubai's $4,779 or Doha's similar pricing, making Manama attractive for value-seeking investors.
It's something we develop in our Bahrain property pack.
How much have property prices increased in Manama during 2024?
Manama's residential property market experienced modest but consistent growth throughout 2024, with different segments showing varying performance levels.
High-end apartments posted a 1.4% year-on-year increase in 2024, while luxury villa sales in prime areas like Amwaj Islands achieved stronger growth of 8% on a per-square-meter basis. The overall Manama market saw price increases of approximately 3% in 2024, building on similar growth from the previous year.
Transaction volume provided a stronger indicator of market health, with the Real Estate Regulatory Authority (RERA) reporting a 17.92% increase in the value of real estate transactions in the third quarter of 2024. This surge in activity reflects growing investor confidence and market liquidity.
The luxury residential segment particularly outperformed, with villa sales showing an 8% year-on-year increase driven by local demand for affordable premium housing options. International buyers continued to focus on freehold areas, with over 70% of expat property purchases concentrated in zones like Durrat Al Bahrain, Seef, and Amwaj Islands.
Supply dynamics also influenced pricing, with CBRE reporting that freehold apartment stock available to international investors reached approximately 19,356 units, with an additional 1,361 units expected by end-2024 representing a 7% increase in supply.
Which areas in Manama are experiencing the fastest property price growth?
Several key neighborhoods in Manama are experiencing accelerated price appreciation, driven by limited supply and strong demand fundamentals.
| Neighborhood | Price Growth Level | Key Growth Drivers |
|---|---|---|
| Seef District | High (6-8%) | Limited stock availability, central business location, ongoing commercial development, strong rental demand from professionals |
| Amwaj Islands | High (7-8%) | Luxury waterfront developments, $1.5 billion ongoing investment, new amenities including Tala Islands project with 48 beachfront villas |
| Juffair | Medium-High (5-7%) | Vibrant nightlife and entertainment district, strong expat demand, proximity to US Navy base, modern apartment complexes |
| Bahrain Bay | High (8-10%) | Four Seasons Private Residences launch, status symbol appeal, iconic landmarks including World Trade Centre proximity |
| Saar | Medium-High (6-7%) | Emerging luxury villa destination, government infrastructure investment, spillover from established high-end areas |
| Diyar Al Muharraq | Medium-High (5-6%) | New cultural and commercial developments, rising demand from cultural attractions, planned community amenities |
| Financial Harbour | Medium (4-5%) | Business district proximity, mixed-use developments, professional tenant base, modern infrastructure |
What property types are seeing the biggest price increases in 2025?
Luxury properties and specific residential segments are leading price appreciation in Manama's 2025 market, with clear differentiation between property categories.
High-end apartments and waterfront villas are experiencing the strongest price movements, particularly in premium locations like Seef, Amwaj Islands, and Bahrain Bay. Luxury properties benefit from both local high-net-worth demand and international buyer interest, with properties featuring modern amenities, smart home technology, and sustainable features commanding premium pricing.
Tech-smart, energy-efficient apartments represent a growing trend driving higher demand and prices in 2025. These properties cater to young professionals and tech workers, offering smart technology features and energy-saving systems that align with remote work preferences and sustainability trends.
Family-oriented properties with larger living spaces are seeing increased demand, particularly in suburban areas surrounding Manama. Properties with outdoor spaces like terraces, balconies, or gardens have become highly desirable post-pandemic, commanding price premiums of 10-15% over similar units without these features.
Conversely, mid-range properties face more stable pricing due to increased supply from new affordable housing projects. Government initiatives to boost affordable housing supply may temper price growth in the middle-tier segment, though demand remains healthy.
What are the current mortgage rates for property buyers in Manama?
Mortgage financing in Manama remains accessible with competitive rates, though requirements vary significantly between local and foreign buyers.
For Bahraini nationals, mortgage rates typically range from 3.5% to 5.5% for residential properties, depending on the lending institution and loan terms. Local banks offer attractive financing packages with down payments starting from 15-20% for first-time buyers, with government schemes available to support homeownership among younger demographics.
Foreign nationals face higher down payment requirements, typically ranging from 20% to 30% of the property's purchase price. Some lenders like HSBC Bahrain required minimum down payments of 30% for home loans in 2023-2024, reflecting a more cautious lending approach for non-resident buyers.
The average down payment for residential mortgages in Bahrain is approximately 20% of the property's value, though this serves as a starting point with many lenders requiring higher amounts for luxury properties or foreign buyers. Loan terms typically extend up to 25 years for residents and may be shorter for non-residents.
With Bahrain's stable financial sector and Central Bank oversight, mortgage markets remain liquid and competitive. However, potential buyers should note that rising interest rates globally may influence local lending rates, and the choice between fixed and variable rates becomes increasingly important in the current economic environment.
Get fresh and reliable information about the market in Manama
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
What are the main drivers pushing property prices up in Manama?
Multiple structural factors are supporting upward pressure on Manama's property prices, creating a supportive environment for sustained growth.
Economic diversification through Bahrain's Vision 2030 represents the primary long-term driver, reducing oil dependence and expanding non-oil sectors that now account for 37% of GDP. This diversification is attracting businesses and professionals to Manama, creating sustained demand for both residential and commercial properties.
Foreign investment reached record levels of $6.8 billion in 2023, representing a 148% increase from the previous year. Investor-friendly policies including long-term visa programs, Golden Visa options, and 100% foreign ownership rights in designated freehold areas are drawing international capital to Manama's property market.
Infrastructure development is enhancing Manama's attractiveness, with major projects including the $1.1 billion passenger terminal expansion supporting 14 million annual travelers, new road networks, and enhanced connectivity to neighboring areas. These improvements directly support property values in affected districts.
Manama's designation as GCC tourism capital for 2024 is boosting the hospitality sector and short-term rental demand. Population growth and urbanization, combined with a rising expatriate community, continue fueling demand for housing across all segments.
It's something we develop in our Bahrain property pack.
What factors could potentially cause property prices to decrease in Manama?
Despite positive fundamentals, several risk factors could create downward pressure on Manama's property prices if they materialize.
Oversupply in certain segments poses the most immediate risk, particularly in the apartment market where 1,361 new units entered the market in 2024, representing a 7% increase in freehold stock. Without corresponding demand growth, this could lead to price stagnation or declines, especially in mid-range properties.
Regional geopolitical tensions could dampen investor sentiment and slow capital inflows, though Bahrain's market has shown resilience compared to regional peers. Any escalation of regional conflicts could impact international buyer confidence and reduce foreign investment flows.
Global economic uncertainty and rising interest rates could affect demand from both local and international buyers. Inflation and increased cost of living may reduce disposable income for potential buyers, particularly impacting the middle-income property segment.
Over-leveraging concerns are emerging as experts warn about mortgage defaults if interest rates continue climbing. Variable mortgage rates tied to central bank policies create vulnerability for buyers who may struggle with payment increases.
Rapid completion of government affordable housing initiatives could outpace demand in the lower-tier segments, leading to price corrections in specific areas while potentially affecting overall market sentiment.
How do Manama property prices compare to other Gulf cities?
Manama offers compelling value within the GCC property market, positioning itself as an affordable alternative to premium Gulf destinations while maintaining strong fundamentals.
| City | Avg. Price City Center ($/m²) | Avg. Price Suburbs ($/m²) | Rental Yield (%) | Market Position |
|---|---|---|---|---|
| Dubai | $4,779 | $3,550 | 5-8% | Premium, high growth |
| Doha | $4,779 | $3,550 | 5-8% | High price, strong demand |
| Riyadh | $2,379 | $1,779 | 6-8% | Strong growth, high yield |
| Manama | $2,589 | $2,299 | 5-7% | Affordable, stable growth |
| Kuwait City | $1,393 | $1,393 | 5-7% | Lower price, stable |
| Muscat | $1,393 | $1,393 | 5-7% | Lower price, stable |
Manama's pricing sits in the middle tier of GCC capitals, offering more affordable entry points than Dubai or Doha while commanding higher values than Kuwait City or Muscat. This positioning appeals to investors seeking stable returns without premium market pricing.
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 are the property price forecasts for Manama through 2030?
Long-term projections for Manama's property market indicate sustained growth supported by fundamental economic and demographic drivers.
For the next 5 years (2025-2030), annual price growth is expected to average 3-7%, with luxury and prime areas likely outpacing the broader market. The Bahrain residential market is projected to grow at a CAGR of 6.11% from 2025 to 2033, indicating robust long-term prospects.
The luxury residential segment shows particularly strong forecasts, with market size expected to grow from $296.92 million in 2025 to $399.41 million by 2030, representing a 6.11% CAGR. This growth reflects continued demand from both domestic and international buyers for high-end properties.
Medium-term outlook (10 years) suggests continued economic diversification, infrastructure development, and demographic growth will support steady appreciation. Premium segments including waterfront properties and tech-enabled developments are expected to see the highest gains, potentially outperforming the overall market by 2-3 percentage points annually.
Long-term projections (20 years) become less certain due to potential macroeconomic and geopolitical shifts, but if current policies and growth drivers persist, Manama's property market could see cumulative price increases of 50-100% over two decades. However, investors should consider these projections alongside evolving regional dynamics and global economic trends.
It's something we develop in our Bahrain property pack.
Is now a good time to buy property in Manama as an investment?
Current market conditions present a favorable environment for property investment in Manama, with several factors supporting the investment case as of mid-2025.
Market fundamentals remain strong with record foreign investment of $6.8 billion, economic diversification reducing oil dependence, and Manama's status as GCC tourism capital for 2024 supporting demand. Property prices are rising at a sustainable 3-7% annually, indicating healthy appreciation without bubble conditions.
Rental yields of 5-8% in popular areas provide attractive income streams, particularly for properties in Seef, Juffair, and Amwaj Islands where expat demand remains strong. The price-to-rent ratio of approximately 9.31 suggests properties can pay for themselves through rental income within a reasonable timeframe.
For luxury property investors, the segment shows robust growth prospects with the market expected to reach $399.41 million by 2030. Areas like Bahrain Bay and Amwaj Islands are seeing new high-end developments that appeal to international buyers seeking premium lifestyle amenities.
However, investors should consider supply increases in certain segments and ensure they target areas with strong demand fundamentals. Mid-range properties may face more competition from new affordable housing supply, making location and property selection crucial for investment success.
Foreign investors benefit from freehold ownership rights in designated areas, transparent legal frameworks, and no capital gains tax, making Manama particularly attractive compared to other regional markets with more restrictive ownership rules.
What are the best areas for first-time property buyers in Manama?
First-time buyers in Manama should focus on areas offering good value, growth potential, and practical accessibility for daily living needs.
1. **Juffair** - Offers the most balanced proposition for first-time buyers with apartments priced at BHD 700-800 per square meter, vibrant community life, and strong rental potential if needed. The area provides excellent amenities including restaurants, entertainment, and proximity to business districts.2. **Seef (selective properties)** - While generally expensive, some older developments in Seef offer entry opportunities for first-time buyers seeking long-term appreciation. Properties here benefit from central location and strong fundamentals despite higher initial costs.3. **Adliya** - Cultural hub with more affordable housing prices and growing artistic community. Three-bedroom apartments average around 450 BHD monthly rent, indicating reasonable purchase prices for owner-occupiers.4. **Hoora and Zinj** - Traditional residential areas offering some of Manama's most affordable property prices. While lacking premium amenities, these neighborhoods provide genuine homeownership opportunities for budget-conscious buyers.5. **Amwaj Islands (studio/1-bed)** - Entry-level units in this premium development offer future appreciation potential and modern amenities, though requiring higher initial investment than traditional areas.First-time buyers should prioritize freehold areas if they are foreign nationals, ensuring legal ownership rights and investment protection. Consider proximity to employment centers, transportation links, and community amenities when making decisions.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Yes, property prices in Manama are going up, driven by economic diversification, record foreign investment, and strong demand fundamentals across luxury and mid-range segments.
The market shows sustainable growth of 3-7% annually with premium areas like Seef, Amwaj Islands, and Bahrain Bay leading appreciation, supported by infrastructure development and Manama's emerging status as a regional tourism and business hub.
Sources
- Sands of Wealth - Bahrain Real Estate Market
- Sands of Wealth - Manama Price Forecasts
- Sands of Wealth - Manama Real Estate Market
- Sands of Wealth - Bahrain Price Forecasts
- Sands of Wealth - Bahrain Real Estate Trends
- Mordor Intelligence - Bahrain Luxury Residential Real Estate Market
- AGBI - Bahrain's Residential Property Pressure
- Statista - Bahrain Residential Real Estate Market Forecast