Bahrain's Housing Market: Average Property Prices

Bahrain is an attractive place for home buyers, with modern, unique, and affordable housing. The cost of living is lower than in other countries in the surrounding region, including the United States. The kingdom's real estate scene is versatile, offering extensive real estate options with varied sizes and prices to suit all tastes and budgets. Apartments for sale in Bahrain are the most widely available property type on the market, but you can also find villas for more suburban, spacious, and private living. The average price of a sea-view two-bedroom apartment that comes semi-furnished is 115,000 BHD, while a fully furnished one-bedroom apartment with panoramic sea and lagoon views is available for 119,688 BHD.

Expats can buy property in Bahrain and gain permanent residency

Bahrain is a popular destination for foreigners looking to invest in real estate. The country boasts stunning landscapes, a vibrant culture, and a welcoming population. In recent years, Bahrain has changed its rules to allow foreigners to buy property, but only in certain areas. Here's what you need to know about buying property and gaining permanent residency as an expat in Bahrain.

Buying Property in Bahrain as an Expat

Foreign nationals can own property in Bahrain, but this is typically restricted to specific designated areas. These areas are usually high-end, developed for luxury living and commercial activities. In these zones, expats can own freehold properties, giving them full ownership rights. Outside of these areas, ownership rules can be more restrictive, and foreigners may not be able to own land outright.

The process of buying property as a foreigner in Bahrain might involve additional paperwork and longer waiting times for approvals. It's important to consult with a local real estate expert or legal advisor, as regulations can change. There isn't typically a minimum investment requirement, but since property ownership is limited to certain areas, market prices in these zones tend to be higher.

Gaining Permanent Residency Through Property Ownership

Bahrain offers a residency scheme for foreign nationals who invest in real estate. This scheme provides an attractive option for those seeking to live in Bahrain or establish a base in the Middle East. To qualify, individuals must invest in high-value properties in designated areas. Once the investment is made, individuals can apply for residency by submitting proof of property ownership, along with other required documents like passports and financial statements.

It's important to note that the residency granted under this scheme is not permanent and has a fixed duration, requiring periodic renewals. While owning property facilitates obtaining residency, it does not directly lead to citizenship. Bahraini citizenship laws are strict and generally require a lengthy period of continuous residency.

Popular Areas for Expat Property Investment in Bahrain

• Amwaj Islands: Comprising six man-made islands, Amwaj offers a luxurious lifestyle with modern amenities, retail spots, healthcare facilities, and tourist attractions.
• Juffair: A vibrant area in the southeast of Manama, featuring hotels, restaurants, flats, and villas. Juffair has a wide range of facilities, including schools, sports clubs, and medical care.
• Durrat Al Bahrain: A hallmark resort island city with beachfront villas, luxury apartments, offices, hotels, entertainment precincts, international schools, and shopping malls.
• Seef: A commercial district in Manama with luxury apartments, hotels, and shopping malls. It is one of the freehold areas where expatriates can buy and own properties.
• Bahrain Bay: A large waterfront project providing residential, commercial, and tourist services. It includes attractions such as the Four Seasons Hotel and Water-bay Residence.
• Abraj Al Lulu: A large residential project with luxury one- to three-bedroom apartments and a full range of sports and recreational facilities.
• Riffa: The second-largest city in Bahrain, divided into East Riffa, popular with expats, and West Riffa, a residential area for the ruling family and business investors.
• Reef Island: A gated community with amenities such as a five-star hotel, marina, shopping mall, and exhibition center. It offers a luxurious freehold development for expatriates.
• Saar: A residential area known for its large villas and ancient history, located close to the KSA border. Saar includes prestigious neighborhoods, entertainment centers, and essential facilities such as schools and universities.
• Diyar Al Muharraq: A complex of seven artificial islands with picturesque beaches and historical monuments. It provides luxurious services and facilities, including the Dragon City Mall.

Golden Residency Visa

Bahrain offers a Golden Residency Visa for eligible foreigners, providing immediate residency rights. This visa costs 300 dinars (approximately $800) and requires holders to stay in Bahrain for at least 90 days per year. Eligibility includes owning a home worth 200,000 Bahraini dinars (approximately $530,000) or having a monthly pension of 4,000 dinars (approximately $10,600). Golden residency allows individuals to work in Bahrain and bring in family members.

Seef District has some of the highest property prices in Bahrain

Seef is a popular and sought-after suburban district in Manama, Bahrain's capital city. With the sea on three sides, Seef is a business hub, home to many companies' headquarters, and one of the country's major commercial areas.

Seef has some of the highest property prices in Bahrain. A square meter in a one-bedroom apartment can range from 800 to 1250 BHD, with rentals for one-bedroom apartments falling between 400 and 850 BHD per month.

The area's popularity is due in part to its waterfront location and its status as a freehold area, allowing non-Bahraini citizens to buy and own property. Seef also offers a range of facilities and services, including hospitals, medical centers, schools, and training centers.

The district is well-connected to other vital areas of Manama, such as the man-made Reef Island and the Diplomatic Area, which are easily accessible via the Shaikh Khalifa bin Salman Highway bordering Seef to the south.

Seef's strategic location, overlooking a vital part of Bahrain's northern coastline, has attracted many multinational firms, especially financial services providers and investment banks, to establish their headquarters or regional offices there.

The presence of embassies and governmental institutions, such as the National Health Regulatory Authority and the Ministry of Youth and Sports Affairs, further contributes to the area's importance.

Seef also boasts several tourism attractions, including ancient sites like Bahrain Fort and modern entertainment complexes such as Wahooo! Water Park and City Centre Bahrain, the country's largest mall.

The development of multiple hotels and resorts, such as the Ritz Carlton Bahrain and Jumeirah Royal Saray Bahrain, has added to the area's appeal.

With its diverse range of properties, from apartments to villas and penthouses, Seef is a desirable location for both locals and expats seeking a quiet yet well-connected area to call home.

Amwaj Islands was the first place in Bahrain to allow 100% freehold ownership to expats

Property prices in Bahrain vary widely according to the area. The cost of living in Bahrain is relatively lower than in other countries in the surrounding region. For example, rent in Bahrain is estimated to be about 23% lower than in the United States.

• Reef Island: An artificial island located north of Manama. It is one of the most expensive areas in Bahrain. A one-bedroom apartment is sold at an average of 850-1400 BHD per square meter, and rentals range from 650-800 BHD per month.
• Seef: A popular suburban district in Manama. Property prices in Seef are among the highest in Bahrain. A square meter in a one-bedroom apartment typically falls between 800 and 1250 BHD, and rentals range from 400-850 BHD per month.
• Amwaj Islands: Amwaj Islands is located near the coast of Muharraq Island in the Arabian Gulf and is composed of a group of man-made islands. It was the first place in Bahrain to allow 100% freehold ownership to expats. Property prices on Amwaj Islands are among the highest in Bahrain. A one-bedroom apartment typically sells for 740-1100 BHD per square meter, depending on the finishing, and rentals range from 450-850 BHD per month.
• Juffair: A suburban neighbourhood in Manama, home to Bahrain's largest mosque, Al Fateh Mosque. Property prices in Juffair are slightly lower than in Reef Island, Seef, and Amwaj Islands. A one-bedroom apartment generally falls between 700-800 BHD per square meter, and rentals range from 375 to 750 BHD per month.
• Isa Town: A middle-class town in the north-central area of Bahrain, famous for its culturally rich marketplace and private schools. Property in Isa Town can be inexpensive, with a square meter valued at 500-600 BHD, and sometimes reaching 1,000 BHD. Rentals are also affordable, with one-bedroom apartments available for 120-150 BHD per month.
• Riffa: The second-largest city in Bahrain, divided into West Riffa and East Riffa. Property prices in East Riffa are considered relatively affordable. A square meter typically falls between 450-600 BHD, and rentals for a one-bedroom apartment range from 150-300 BHD per month.
• Janabiyah: A village in the northwest of Bahrain, famous for its camel farms and ancient burial grounds. Property prices in Janabiyah are a little higher than in Isa Town and Riffa, with a square meter priced at around 750 BHD. Rentals for a one-bedroom apartment typically range from 300-400 BHD per month.

Amwaj Islands: The First Place in Bahrain to Allow 100% Freehold Ownership to Expats

Amwaj Islands is a group of man-made islands located in the Persian Gulf, about 10.5 km northeast of Bahrain's main island. It spans an area of around 4.3 square kilometers of reclaimed land and comprises six islands: Tala, Najmah, Asdaf, Murjan, Jood, and Lulu.

In the year 2000, a pioneering project was planned for Bahrain, which was the first to offer 100% freehold land ownership to expatriates living in the country. This project resulted in the development of Amwaj Islands, with the aim of increasing the supply of waterfront properties, which were previously in low supply in this small island nation. The project is being developed by Ossis Property Development with an investment of 1.5 billion US dollars.

Amwaj Islands has established itself as one of the most expensive and premier areas to live in Bahrain. It offers a wide range of residential options, from flats for rent to spacious villas. For example, an unfurnished one-bedroom apartment with waterfront views and access to amenities can cost around 80,000 BD to buy, while rentals for a one-bedroom apartment range from 450 to 500 BD per month.

Amwaj Islands provides its residents with a relaxing environment and luxurious waterfront properties. It is also conveniently located just 4.5 kilometers from Bahrain International Airport and 15 minutes from the capital city, making it a desirable destination for tourists and investors.

In addition to its residential offerings, Amwaj Islands boasts superior services and facilities, including hospitals, healthcare centers, schools, high-end commercial buildings, hotels, resorts, and water sports activities.

With its beautiful beaches, parks, and luxurious lifestyle, Amwaj Islands has become a popular spot to live, visit, and invest in, attracting both regional and international investors.

Juffair is a popular area for expats, with good access to the airport and city centre

Juffair is a popular destination for expats in Bahrain, offering a range of attractions and amenities. Located in the capital city of Manama, Juffair boasts a vibrant nightlife scene with pubs, fine dining restaurants, trendy cafes, and luxury hotels. The area is also known for its shopping malls, including Juffair Mall, Juffair Square, and Oasis Mall, making it a convenient location for those who enjoy urban conveniences.

One of the distinctive features of Juffair is its proximity to the coast, offering residents and visitors alike the opportunity to enjoy the beauty of the Arabian Gulf. In addition, Juffair is just a 20-minute drive from the airport, making it easily accessible for those travelling in and out of the country. The area also benefits from a proper commute system, making it convenient for expats to get around.

Juffair is home to a diverse range of residents, including expats, tourists, and young Bahraini nationals. The presence of the American Navy Base in the area also attracts Navy employees and contributes to the vibrant and active atmosphere. The neighbourhood has a high population of expats, with more than half of Bahrain's kingdom's population consisting of working and living expats.

The property market in Juffair is active and varied. For those looking to rent, studio apartments range from 330BD to 400BD per month, while one-bedroom apartments start at 350BD. For larger families, two-bedroom homes are available for rent at an average of 630BD. Juffair also offers a range of high-rise towers and residential buildings, with options to buy or rent.

In addition to its social and leisure attractions, Juffair provides convenient access to essential facilities and services. The area is home to the Bahrain Specialist Hospital, which offers healthcare services in multiple specialties, and educational institutions such as the Modern Knowledge School and Bahrain School. Juffair also houses several embassies, including those of Nepal and Indonesia.

Apartments are the most widely available property type in Bahrain

In the suburban district of Seef, in Manama, a one-bedroom apartment can be purchased for 800-1250 BHD per square meter, or rented for 400-850 BHD per month. Amwaj Islands, the first in Bahrain to allow full foreign ownership, offers similar prices for one-bedroom apartments, with sales prices ranging from 740-1100 BHD per square meter and rentals from 450-850 BHD per month.

For those seeking more affordable options, Juffair, another neighbourhood in Manama, offers one-bedroom apartments for 700-800 BHD per square meter, or 375-750 BHD per month in rent. Isa Town, a middle-class area with a rich cultural marketplace, provides even more inexpensive options, with sales prices averaging 500-600 BHD per square meter and rentals at 120-150 BHD per month for a one-bedroom apartment.

Riffa, the second-largest city in Bahrain, offers a range of apartments and villas, with sales prices from 450-600 BHD per square meter and rentals from 150-300 BHD per month for a one-bedroom apartment. Janabiyah, a village in northwest Bahrain, has slightly higher prices, with sales prices of around 750 BHD per square meter and rentals from 300-400 BHD per month for a one-bedroom apartment.

Overall, apartments in Bahrain offer a range of options, from luxurious to affordable, making them the most widely available property type in the country.

Frequently asked questions